Home News Typical mortgage payment has soared $337 in just six weeks as interest rates almost hit 7%

Typical mortgage payment has soared $337 in just six weeks as interest rates almost hit 7%

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The average U.S. homeowner saw their monthly mortgage payment increase by 15%, or $337, according to a shocking new report from . redfin.

The report goes on to say that the nearly 7% rise in mortgage rates is the highest since July 2007, just before the crash that triggered the Great Recession.

This leaves potential homebuyers to chill their feet and decide not to buy in the current market.

What’s more, homes have stayed on the market longer, causing owners to cut prices to the highest level since 2015.

Pending sales have not been at their current lows since January, and the volume of homes being sold at below market prices is at its highest level since 2020. It has decreased by 14% since the same period.

Redfin’s Jason Aleem is quoted in the report as saying:

He continues: If your home isn’t the “ball beauty” in your neighborhood, you’ll need to lower the price to sell it.

The nearly 7% rise in mortgage rates is the highest since July 2007, just before the crash that triggered the Great Recession, according to a Redfin report.

One of Redfin's key indicators of the decline in potential buyers is that

One of Redfin’s key indicators of the decline in potential buyers is that “homes for sale” as a search term on Google dropped 33% in September of this year compared to the same period last year. That’s the fact.

New residential listings down 14% year-over-year

New residential listings down 14% year-over-year

One of Redfin’s key indicators of the decline in potential buyers is that “homes for sale” as a search term on Google dropped 33% in September this year compared to the same period last year. That’s the fact.

Other factors, such as home tour requests, have declined along with mortgage purchase applications.

At the time of writing, the average US home price is $369,250, up 7% year over year.

Sales prices fell 4% in crime-ridden San Francisco and 11% in New Orleans.

Mortgage buyer Freddie Mac reported Thursday that the average key 30-year rate rose to 6.70% from last week’s 6.29%. In contrast, this rate he was 3.01% a year ago.

The average interest rate for a 15-year fixed-rate mortgage, popular among those looking to refinance their mortgage, jumped to 5.96% from last week’s 5.44%.

Rapidly rising mortgage rates threaten to sideline more homebuyers after more than doubling in 2022. Last year, prospective homebuyers saw interest rates well below 3%.

Freddie Mac points out that in terms of typical mortgage amounts, borrowers pegged at the top of the weekly interest rate range over the past year would pay hundreds of dollars more than those pegged at the bottom of the range. did.

Seattle's housing market is slowing faster than any other in the nation, new research reveals - as cash-strapped buyers become increasingly hesitant to buy homes.

Seattle’s housing market is slowing faster than any other in the nation, new research reveals – as cash-strapped buyers become increasingly hesitant to buy homes.

Last week, the Federal Reserve raised its benchmark borrowing rate by another three-quarters of a percentage point in an attempt to keep the economy in check.

Perhaps nowhere is the impact of the Fed’s actions more evident than in the housing sector. Existing home sales have fallen for the seventh straight month as rising borrowing costs have made more people unable to afford their homes.

The government said Thursday that the US economy, hit by soaring consumer prices and rising interest rates, contracted at an annualized rate of 0.6% from April to June. This is unchanged from our previous estimate in the second quarter.

Fed officials expect to raise the benchmark rate further to around 4.4% by the end of the year. And they expect that percentage to rise to around 4.6% next year. This is the highest level since 2007.

The Federal Reserve is increasing the cost of taking out mortgages, auto loans, and business loans by raising borrowing rates. Consumers and businesses will likely borrow and spend less, cooling the economy and slowing inflation.

Mortgage rates don’t necessarily reflect Fed rate hikes, but they do tend to track 10-year Treasury yields. This is influenced by a variety of factors, including investor expectations of future inflation and global demand for the US Treasury.

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