{"id":769623,"date":"2023-07-13T10:09:36","date_gmt":"2023-07-13T14:09:36","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-u-s-home-prices-rise-for-the-first-time-in-nearly-five-months\/"},"modified":"2023-07-13T10:09:36","modified_gmt":"2023-07-13T14:09:36","slug":"redfin-reports-u-s-home-prices-rise-for-the-first-time-in-nearly-five-months","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/redfin-reports-u-s-home-prices-rise-for-the-first-time-in-nearly-five-months\/","title":{"rendered":"Redfin Reports U.S. Home Prices Rise For the First Time in Nearly Five Months"},"content":{"rendered":"

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Redfin Reports U.S. Home Prices Rise For the First Time in Nearly Five Months<\/b><\/p>\n

Elevated mortgage rates are cutting into homebuyers\u2019 budgets. But this week\u2019s inflation report<\/i>\u2014which shows that consumer prices are cooling quickly<\/i>\u2014provides a glimmer of hope that mortgage rates could gradually start to come down.<\/i><\/p>\n

SEATTLE–(BUSINESS WIRE<\/a>)–
\n(NASDAQ: RDFN) \u2014 The median U.S. home-sale price rose 1.5% from a year earlier during the four weeks ending July 9, the first increase in nearly five months. That\u2019s according to a new report<\/a> from Redfin (redfin.com<\/a>), the technology-powered real estate brokerage.<\/p>\n

\nAverage weekly mortgage rates are at their highest level since November 2022, bringing the typical homebuyer\u2019s monthly payment to a near-record-high of $2,627.<\/p>\n

\nTo look at the hit on affordability another way, a homebuyer on a $3,000 monthly budget can afford a $450,000 home with today\u2019s average rate. That buyer has lost $30,000 in purchasing power since February, when they could have bought a $480,000 home with that month\u2019s average rate of around 6%. The drop is more extreme when compared to a year ago, when a $3,000 monthly budget would have bought a $510,000 home at a rate of about 5.3%.<\/p>\n

\nPrices are rising despite relatively low demand because there are so few homes for sale. New listings are down 27% year over year, the biggest drop since the start of the pandemic, and the total number of homes on the market is down 14%, the biggest drop since March 2022. That\u2019s mostly because potential sellers are locked in by low rates; nearly all homeowners have a rate below 6%.<\/p>\n

\nOn the bright side, this week\u2019s economic news provides a glimmer of hope for the housing market. The latest consumer-price index report shows that inflation cooled more than expected in June, largely because it has started reflecting months of cooling housing costs.<\/p>\n

\n\u201cThis month\u2019s inflation report is likely to bring mortgage rates down a bit from their recent highs. It shows that the Fed\u2019s interest-rate hikes are working and increases the chance they\u2019ll only hike rates one more time this year,\u201d said Redfin Economic Research Lead Chen Zhao. \u201cBecause elevated mortgage rates are responsible for both of today\u2019s major homebuying challenges\u2014high monthly housing payments and low inventory\u2014any decline is welcome news for buyers. But even though rates will come down slightly, they\u2019ll likely remain well above 6% until the Fed sees several more months of inflation readings closer to their target.\u201d<\/p>\n

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