The typical US homebuyer’s monthly mortgage payment hit $2,563 this week, according to real estate brokerage Redfin. That’s up 29% from the same week last year and an all-time high in data going back to 2015. Although the sale price for a typical home slipped 1.2% from a year ago to $352,750, that decline was offset by rising mortgage rates, which hit their highest level since November this week.
The higher borrowing costs are cutting into demand from potential buyers, and also keeping some sellers on the sidelines, according to Redfin.
“Homebuyers and sellers are ultra-sensitive to mortgage-rate fluctuations, so rates starting to decline would likely bring some buyers and sellers back — and rates rising would push more away,” said Redfin chief economist Taylor Marr.