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The Housing Market Pushing Up Mortgage Costs?

Amid rising home prices, the average mortgage payment has increased by $50 over the last six weeks as sellers’ median asking price increased 12% year over year to a new record high according to a new report from Redfin. 

Even though median asking prices are at record-highs, houses are still being purchased at a blistering pace—46% of homes that went under contract had an accepted offer within the first two weeks on the market, above the 42% rate of a year earlier. 33% had accepted an offer within the first week of hitting the market. 

“Mortgage rates and asking prices are both on the rise, which translates to higher housing costs,” said Redfin Chief Economist Daryl Fairweather [1]. “For now, mortgage rates are still hovering near 3% and demand remains strong. However, we are likely to see rates tick up into the winter months, and that could slow demand just like it did in late 2018. As that happens, sellers will have a harder time getting buyers to bite on their sky-high asking prices.” 

The report, authored by Redfin Analyst Tim Ellis [2], also found: 

A full copy of the report can be viewed here. [3]