{"id":690450,"date":"2022-09-29T13:49:08","date_gmt":"2022-09-29T17:49:08","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-typical-homebuyers-mortgage-payment-up-15-since-mid-august\/"},"modified":"2022-09-29T13:49:08","modified_gmt":"2022-09-29T17:49:08","slug":"redfin-reports-typical-homebuyers-mortgage-payment-up-15-since-mid-august","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-typical-homebuyers-mortgage-payment-up-15-since-mid-august\/","title":{"rendered":"Redfin Reports Typical Homebuyer\u2019s Mortgage Payment Up 15% Since Mid-August"},"content":{"rendered":"

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Redfin Reports Typical Homebuyer\u2019s Mortgage Payment Up 15% Since Mid-August<\/b><\/p>\n

Sellers should adjust their price to stay competitive as mortgage rates approach 7%<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\n(NASDAQ: RDFN) \u2014 The typical homebuyer\u2019s monthly mortgage payment has climbed $337 (15%) over the past six weeks to a new high of $2,547, according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage.\n<\/p>\n

\nThe extreme volatility and recent surge in mortgage rates has caused many potential homebuyers to delay or cancel their plans to purchase a home altogether. Pending sales dropped to their lowest level since January, and the share of homes sold above list price fell to its lowest level in over two years.\n<\/p>\n

\nHomeowners are increasingly reluctant to enter the market as mortgage rates approach 7%. Even though new listings are down to their lowest level since February, months of supply (active listings divided by closed sales\u2014the lower the level, the stronger the seller\u2019s market) has been growing quickly, reaching three months for the first time since July 2020. This means that more homes are lingering on the market because they are undesirable and\/or overpriced, so it\u2019s no surprise that the share of home sellers dropping their price reached its highest level on record, at least since 2015 when Redfin began tracking this data.\n<\/p>\n

\n\u201cIt\u2019s imperative for home sellers to react quickly and aggressively as the market turns,\u201d said Senior Vice President of Real Estate Operations Jason Aleem. \u201cThis means adjusting your pricing immediately if you want to be competitive and attract offers from a smaller pool of qualified homebuyers. If your home isn\u2019t the \u2018belle of the ball\u2019 in your neighborhood, you\u2019re going to need to cut the price to sell it.\u201d\n<\/p>\n

\n\u201cIt\u2019s important to remember that much of the housing market data and neighborhood comparables being reported are based on home purchases that were agreed to a month or more ago when mortgage rates were a point and a half lower,\u201d said Redfin Deputy Chief Economist Taylor Marr. \u201cSellers should anticipate that buyers are unwilling or unable to pay a price similar to what their neighbor\u2019s home sold for a month ago, and buyers should connect with their lenders to find ways to mitigate the impact of rising rates. This could include paying upfront to lock in a rate, switching to an ARM and tightening your budget so you don\u2019t end up with a monthly mortgage payment that\u2019s a stretch to afford in the months to come.\u201d\n<\/p>\n

Leading indicators of homebuying activity<\/b>:\n<\/p>\n