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Average monthly mortgage rates in the United States are on the rise, as payments on homes have jumped $ 50 in the past six weeks, according to a new report from Redfin.
In recent weeks, the 30-year benchmark loan has surpassed 3% for the first time since June, according to the real estate brokerage.
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Since October 7, the rThe interest rate for a 30-year loan is 2.99%, while the rate for a 15-year loan, a popular option for homeowners refinancing their mortgages, is around 2.33%. , according to mortgage buyer Freddie Mac.
“For now, mortgage rates are still hovering around 3% and demand remains strong,” said Redfin chief economist Daryl Fairweather.
“Sold” signs are posted on land as construction of new homes continues in a new neighborhood in Northbrook, Ill. On Sunday, March 21, 2021. (AP Photo / Nam Y. Huh / AP Newsroom)
Realtor.com Director of Economic Research George Ratiu has warned that mortgage rates are on “an upward trajectory” and this is already impacting the budgets of first-time homebuyers.
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“At today’s rate, a buyer looking for a mid-priced home will spend an additional $ 134 per month on their mortgage payment, adding over $ 1,600 per year to their payments,” he said.
For now, however, homes are still selling very quickly, with almost half finding a buyer within two weeks, according to Redfin. In fact, homes always sell for more than their asking price.
In the four-week period ending Oct. 3, asking prices on newly listed homes hit a new record, rising 12% year-over-year to a median of $ 365,073, a reported Redfin. Asking prices increased throughout September, which Redfin said is a “typical late summer seasonal hike.”
Due to rising housing costs, Ratiu expects the pace of US home sales to moderate during the latter part of the year.
MORTGAGE PAYMENTS ARE BECOMING MORE AND MORE OUT OF AFFORDABLE
Fairwether agrees.
“We will likely see rates increase during the winter months, which could slow demand as it did at the end of 2018,” Fairweather said. “In this case, sellers will have a harder time getting buyers to bite their outrageous asking prices. ”
Redfin noted that there is already a growing share of listings that have fallen in price, reinforcing the idea that hat price increases may moderate slightly.
The Associated Press contributed to this report.
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