Monthly payments are going up as mortgage rates continue to climb but a boost in new listings could signal a fall price cooldown.
Rates have soared to their highest level in more than two decades, sending monthly housing payments to record highs. A buyer with a $3,000 monthly budget has lost almost $40,000 in purchasing power YOY as rates rose from 6.5% to nearly 8% today, according to a new analysis from Redfin.
This is exacerbated by stagnant home inventory, which continues to trend down as stock shortages are keeping home prices high even as competition peters out. The total number of homes for sale is down 14%, Redfin noted.
The typical home sold for $371,000 during the four weeks ending October 1, up 3% YOY.
But one piece of good news could turn things around moving forward. New listings were up 3% last month.
On top of that, fall listings aren’t experiencing the same seasonal dip from summer they’re used to. Redfin says this is partially because there are so few listings already that a big dip is impossible, but the fact remains.
More listings could eventually allow prices to come down in some markets, and potentially nationwide.
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