Rising Supply Draws in Buyers, Even as Housing Payments Soar 10% to All-Time High
Reaching an all-time high, the average monthly housing payment in the United States hit $2,721 during the four weeks ending March 24. This is up 10% compared with one year ago. Elvated mortgage rates and rising home prices are fueling these high payments to their record-high.
Taking advantage of the rising prices, new listings rose 15%, which is the biggest increase in almost three years. And the biggest increase in nearly a year, the total number of homes for sale is up 6%.
The rise in supply is bringing buyers back, raising housing demand. Also on the rise are mortgage applications, which are up 14% from just one month ago with pending home sales just 1% lower compared to a year ago, which is the smallest decline since the start of this year.
“High mortgage rates aren’t deterring buyers as much as they were last year; a lot of people want to get in now before prices go up more,” said Miami Redfin agent Rachel Riva. “All of my recent listings have gone under contract in under 10 days, and most of them have received multiple offers. Buyers are lessening the impact of elevated rates in a few ways: Some are making high down payments to lower their monthly payments, and some are willing to take on a high rate now in hopes of refinancing when and if rates come down.”
According to Redfin, There are a few signs that price growth could soften a bit in the coming months. Nearly 6% of home sellers dropped their asking price this week, on average, the highest share of any March on record. Months of supply hit its highest level of any March since 2020–when the onset of the pandemic ground the housing market to a halt–indicating that the market is becoming more balanced.
