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U.S. Monthly Mortgage Payments Hit Record High

On average, roughly one in 15 (6.5%) U.S. homes for sale had a price drop during the four weeks ending September 24, up from 5.8% a month earlier—a sharp monthly increase compared to the same period in years past.

That’s according to a new report from Redfin, which showed that at the same time, the median home-sale price is up an estimated 3% year-over-year. The typical homebuyer’s monthly payment is now at a record high as mortgage rates remain elevated, with daily average rates hitting a two-decade high on September 27.

Leading indicators of homebuying demand and activity:

  • As of Sept. 27, the daily average 30-year fixed mortgage rate was 7.65%, representing the highest level in over two decades and up from an estimated 6.8%, according to Mortgage News Daily.
  • The weekly average 30-year fixed mortgage rate was 7.19% for the week ending Sept. 21, remaining flat from 7.18% a week earlier and up from 6.29%, according to Freddie Mac.
  • Mortgage-purchase applications were down 2% from a week earlier (as of the week ending Sept. 22), down approximately 27%, according to the Mortgage Banker's Association (MBA).
  • The Redfin Homebuyer Demand Index was down 6% from a month earlier (as of the 4 weeks ending Sept. 24), down 7%, and close to its lowest level since January.
  • Google searches for “home for sale" were down 8% from a month earlier as of Sept. 23, representing a 12% decrease, according to Google Trends.

Metros with biggest year-over-year increases in median sale price:

  1. Anaheim, CA (14.2%)
  2. San Jose, CA (10.6%)
  3. Fort Lauderdale, FL (10.5%)
  4. New Brunswick, NJ (10%)
  5. Newark, NJ (9.8%)

Metros with biggest year-over-year declines in median sale price:

  1. Austin, TX (-4.4%)
  2. Houston (-2.2%)
  3. San Antonio (-1.7%)
  4. Fort Worth, TX (-1.6%)
  5. Las Vegas (-1%)

The U.S. median sale price declined in a total of 8 metros, with Phoenix (-1%), Nashville, TN (-0.7%), and Dallas (-0.1%) rounding out the bottom three metros with biggest year-over-year declines.

Metros with biggest year-over-year increases in new listings:

  1. San Jose, CA (7.2%)
  2. West Palm Beach, FL (4.1%)
  3. Miami (3.6%)
  4. Cleveland (3.6%)
  5. San Antonio (3.3%)

New listings declined in all but 10 U.S. metros, with Cincinnati (2.8%), Minneapolis (1%), Pittsburgh (0.7%), Houston (0.5%), and Fort Lauderdale, FL (0.1%) rounding out the bottom five on the list with the largest year-over-year increases.

Metros with biggest year-over-year declines in new listings:

  1. Atlanta (-30%)
  2. Las Vegas (-17.7%)
  3. Riverside, CA (-17.6%)
  4. Portland, OR (-16.4%)
  5. Newark, NJ (-16.2%)

U.S. Highlights

Key housing market data for the four weeks ending Sept. 24, 2023:

  • The median sale price was $372,500, representing a 3.1% year-over-year change. Median sale prices are up partly because elevated mortgage rates were hampering prices during this time last year.
  • The median asking price was $387,350, representing a 4.4% year-over-year change, the biggest increase since October 2022.
  • The median monthly mortgage payment was $2,666 at a 7.19% mortgage rate, representing an 8.5% year-over-year change and reaching an all-time high.
  • Pending sales totaled 76,294, representing a -13% decline.
  • New listings totaled 81,579, down 6.1%, representing the smallest decline in over a year.
  • Active listings totaled 811,325, representing a -15.3% decline.
  • Months of supply averaged 3.2 months, up +0.1 percentage point year-over-year, marking the highest level since February. Roughly 4 to 5 months of supply are considered balanced, with a lower number indicating seller’s market conditions.
  • The share of homes off the market in two weeks rose to 38.8%, up from 35% year-over-year.
  • Median days on market were 31 days, down an estimated one day year-over-year.
  • The share of homes sold above list price remained unchanged at 31.8%.
  • The share of homes with a price drop was 6.5%, up +0.2 percentage points year-over-year, representing the highest share since November 2022.
  • The average sale-to-list price ratio was 99.4%, up +0.2 percentage points year-over-year.

To read the full report, including more data, charts, and methodology, click here.

About Author: Demetria Lester

Demetria C. Lester is a reporter for DS News and MReport magazines with more than eight years of writing experience. She has served as content coordinator and copy editor for the Los Angeles Daily News and the Orange County Register, in addition to 11 other Southern California publications. A former editor-in-chief at Northlake College and staff writer at her alma mater, the University of Texas at Arlington, she has covered events such as the Byron Nelson and Pac-12 Conferences, progressing into her freelance work with the Dallas Wings and D Magazine. Currently located in Dallas, Texas, Lester is an avid jazz lover and likes to read. She can be reached at [email protected].

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