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Redfin Report: Monthly Mortgage Payments Fall; New Listings Post Biggest Annual Uptick in Over 2 Years

November 30, 2023 8:00 AM

The median monthly mortgage payment has declined more than $150 from its peak to its lowest level in three months. Another piece of good news for buyers: New listings are seeing their biggest year-over-year increase since summer 2021.

SEATTLE--(BUSINESS WIRE)-- (NASDAQ: RDFN) —Housing payments have declined for the fifth week in a row, according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. The typical U.S. homebuyer’s monthly mortgage payment was $2,575 during the four weeks ending November 26, down $164 from a peak of $2,739 last month but up 13% year over year.

Monthly payments are falling from their peak because mortgage rates are falling from their peak. The weekly average 30-year mortgage rate is 7.29%, down from a high of 7.79% in October, and the daily average is 7.13% as of November 29, its lowest level since the start of September. Rates have declined enough to offset rising home prices; the median sale price is up 4%. Prices are up because inventory is low; the total number of homes for sale is down 7% year over year. But there is hope for buyers wanting more homes to choose from: New listings are up 6%, the biggest year-over-year uptick in over two years. Buyers are taking note of slightly improved conditions: Mortgage-purchase applications are up 5% week over week.

"Mortgage rates are dropping due to easing inflation and investors betting the Fed will cut interest rates sooner than expected," said Redfin Economics Research Lead Chen Zhao. "Declining rates, along with a sizable year-over-year increase in new listings, are leading to more favorable conditions for some buyers. My advice for serious homebuyers is to compare housing costs to recent highs instead of long-ago lows. Housing costs are at their lowest level in three months, and it's unlikely they will drop significantly anytime soon. That makes it a relatively good time to lock in a rate."

Leading indicators

Indicators of homebuying demand and activity

Value (if applicable)

Recent change

Year-over-year change

Source

Daily average 30-year fixed mortgage rate

7.13% (Nov. 29)

Down from 7.3% a week earlier; near lowest level since start if September

Up from 6.62%

Mortgage News Daily

Weekly average 30-year fixed mortgage rate

7.29% (week ending Nov. 22)

Down from two-decade high of 7.79% a month earlier; fourth straight week of declines

Up from 6.61%

Freddie Mac

Mortgage-purchase applications (seasonally adjusted)

Up 5% from a week earlier (as of week ending Nov. 24)

Down 19%

Mortgage Bankers Association

Redfin Homebuyer Demand Index (seasonally adjusted)

Down 2% from a month earlier (as of the week ending Nov. 26)

Down 5%

Redfin Homebuyer Demand Index, a measure of requests for tours and other homebuying services from Redfin agents

Google searches for “home for sale”

Down 13% from a month earlier (as of Nov. 25)

Flat

Google Trends

Touring activity

Down 38% from the start of the year (as of Nov. 23)

At this time last year, it was down 40% from the start of 2022

ShowingTime, a home touring technology company

Key housing-market data

U.S. highlights: Four weeks ending November 26, 2023

Redfin’s national metrics include data from 400+ U.S. metro areas, and is based on homes listed and/or sold during the period. Weekly housing-market data goes back through 2015. Subject to revision.

Four weeks ending
November 26, 2023

Year-over-year change

Notes

Median sale price

$364,730

4.2%

Prices are up partly because elevated mortgage rates were hampering prices during this time last year

Median asking price

$371,225

6%

Median monthly mortgage payment

$2,575 at a 7.29% mortgage rate

13%

Down $164 from all-time high set a month earlier. Lowest level in 3 months.

Pending sales

61,217

-6.9%

New listings

64,576

5.8%

Biggest uptick in over two years. The increase is partly because new listings were falling at this time last year.

Active listings

856,016

-7%

Smallest decline since June

Months of supply

4.2 months

+0.1 pt.

4 to 5 months of supply is considered balanced, with a lower number indicating seller’s market conditions

Share of homes off market in two weeks

33.7%

Up from 30%

Median days on market

35

-2 days

Share of homes sold above list price

27.3%

Up from 26%

Share of homes with a price drop

5.7%

+0.3 pts.

Average sale-to-list price ratio

98.8%

+0.4 pts.

Lowest level since April

Metro-level highlights: Four weeks ending November 19, 2023

Redfin’s metro-level data includes the 50 most populous U.S. metros. Select metros may be excluded from time to time to ensure data accuracy.

Metros with biggest year-over-year increases

Metros with biggest year-over-year decreases

Notes

Median sale price

Anaheim, CA (19.3%)

San Diego, CA (13%)

Cincinnati, OH (12.3%)

Miami (10.5%)

Providence, RI (9.9%)

Austin, TX (-9.2%)

San Antonio, TX (-1.7%)

Portland, OR (-1.3%)

Detroit (-0.8%)

Houston (-0.5%)

Nashville, TN (-0.2%)

Denver (-0.1%)

Declined in 7 metros

Pending sales

San Jose, CA (15.3%)

Columbus, OH (3.7%)

Detroit (1.3%)

Cincinnati, OH (-21.9%)

New York (-18.7%)

New Brunswick, NJ (-15.4%)

Providence, RI (-15.3%)

Portland, OR (-14.1%)

Increased in 3 metros

New listings

Orlando, FL (22.5%)

San Jose, CA (21.5%)

Phoenix (16.9%)

West Palm Beach, FL (16.7%)

Houston (13.4%)

Atlanta (-14.9%)

San Francisco (-11.7%)

Seattle (-11%)

Providence, RI (-8.4%)

Portland, OR (-6.8%)

Declined in 14 metros

To view the full report, including charts, please visit: https://www.redfin.com/news/housing-market-update-monthly-payments-mortgage-rates-down

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, title insurance, and renovations services. We also run the country's #1 real estate brokerage site. Our home-buying customers see homes first with same day tours, and our lending and title services help them close quickly. Customers selling a home in certain markets can have our renovations crew fix up their home to sell for top dollar. Our rentals business empowers millions nationwide to find apartments and houses for rent. Customers who buy and sell with Redfin pay a 1% listing fee, subject to minimums, less than half of what brokerages commonly charge. Since launching in 2006, we've saved customers more than $1.5 billion in commissions. We serve more than 100 markets across the U.S. and Canada and employ over 4,000 people.

For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email [email protected]. To view Redfin's press center, click here.

Redfin Journalist Services:

Kenneth Applewhaite, 206-588-6863

[email protected]

Source: Redfin

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