Media reports say U.S. mortgage payments fell by nearly $400 in December from their October peak, drawing some homebuyers back into the market, according to a Thursday report from real estate group Redfin.
The median mortgage payment for the four weeks ending Dec. 31 was $2,361, according to Redfin research. That's $372 (14%) less than October and the lowest average monthly payment in nearly a year.
The weekly average mortgage interest rate also hit a 23-year high of 7.79% in October, but fell to 6.61% at the end of December after the Federal Reserve indicated a rate cut in 2024. did.
“Ever since mortgage rates started going down, I've seen more tours and offers on my list,” said Shea Stein, an agent with Las Vegas Redfin Premier. “It's all about perspective. Two years ago, buyers would have been screaming if mortgage rates were 6%. Now they're happy that they're down to the mid-60s. Masu.”
The decline in mortgage prices and interest rates is a welcome sign after housing affordability fell to an all-time low in 2023.
A separate analysis by Redfin in December found that only 15.5% of homes sold in 2023 would be affordable to the typical American household. However, property groups expect the situation to improve due to lower interest rates and increased housing supply.
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