Redfin Reports Homebuyers’ Payments Drop to Lowest Level in Nearly a Year

(Chart courtesy of Redfin)

The median U.S. housing payment has dropped nearly $400 from its October peak, enticing some sidelined buyers to get back in the game, reported Redfin, Seattle.

Redfin’s monthly Housing Market Update reported the median U.S. mortgage payment equaled $2,361 during the four weeks ending December 31, down $372 (-14%) from October’s record high to its lowest level in nearly a year. The weekly average mortgage rate dipped to 6.61% at the end of December, down from a 23-year high of 7.79% in late October.

“Early-stage homebuying demand is starting to pick up as buyers take advantage of lower rates and more homes to choose from,” the report said, noting new listings are up 10% year over year.

Redfin’s Homebuyer Demand Index, a seasonally adjusted measure of requests for tours and other homebuying services, is up 10% from a month ago to its highest level since August. Pending sales are down just 3% annually, the smallest decline in two years.