Sunday 2 October 2022 05:33 AM Typical mortgage payment has soared $337 in just six weeks as interest rates ... trends now
The average US homeowner saw their monthly mortgage payment rise by 15 percent or $337, according to a shocking new report from Redfin.
The report goes on to say that the rising mortgage rates of around seven percent are the highest since July 2007 shortly before crash that triggered the great recession.
This is causing potential homebuyers to get cold feet and decide not to buy in the current market.
In addition, homes are remaining on the market for longer which is resulting in owners dropping prices at the highest level since 2015.
Not since January have pending sales been at the current low level while the amount of homes selling for below market rates is at its highest level since 2020. While new listings are down 14 percent from the same time in 2021.
Redfin's Jason Aleem is quoted in the report as saying: 'It’s imperative for home sellers to react quickly and aggressively as the market turns.'
He continued: 'This means adjusting your pricing immediately if you want to be competitive and attract offers from a smaller pool of qualified homebuyers. If your home isn’t the ‘belle of the ball’ in your neighborhood, you’re going to need to cut the price to sell it.'
According to the Redfin report, the rising mortgage rates of around seven percent are the highest since July 2007 shortly before crash that triggered the great recession
One of Redfin's key indicators of downturn in potential buyers is the fact that 'homes for sale' as a search term on Google was down 33 percent this September compared against the same time last year
New listings of homes are down 14 percent from a year earlier
One of Redfin's key indicators of downturn in potential buyers is the fact that 'homes for sale' as a search term on Google was down 33 percent this September compared against the same time last year.
Other factors, such as home tour requests are down alongside mortgage purchase applications.
