With mortgage rates on the rise and inventory levels at all-time lows, mortgage payments and rents continue to rise all across the country’s, according to the latest data from Redfin…(Redfin)
- The monthly mortgage payment on the median asking price rose to an all-time high of $1,997, up 27% from 2021 and 31.0% from 2020.
- This is thanks to mortgage rates that seem to be safely above 4.0% and home prices jumping thanks to inventory levels continuing to fall. This week active listings fell 27% year-over-year and because of the bidding wars 41% of homes selling above their list prices.
As wannabe homeowners are priced out of buying this is putting upward pressure on the rental market which saw a record high jump year-over-year, according to the latest data from Redfin…(Redfin)
- Average monthly asking rents in the U.S. increased 15.2% year over year to $1,891 in January, the largest annual jump since at least February 2020.
- The national median monthly mortgage payment for homebuyers climbed 25% year over year to $1,595, also the biggest increase in Redfin’s records.
Taylor Marr, Redfin Deputy Chief Economist, said as long as demand remains high none of this is going to change anytime soon…
- “If you think of the housing market like a bathtub, water (supply of homes for sale) is flowing down the drain (buyers sucking up supply) faster than new water (new listings) is coming in through the faucet. Rising mortgage rates may slow the drain down a bit (cool demand) as record-high monthly payments take a toll on buyers’ budgets. Bottom line: without a flood of new listings we will be sitting in a very shallow bath for a while.”