The median monthly mortgage payment was $1,094 in November, the lowest in 2020, thanks to historically low rates, according to a report by Redfin.
“It's easy to forget that the price is just one part of the equation of how much house a buyer can afford,” Redfin Chief Economist Daryl Fairweather said in a release. “The relationship between historically low mortgage rates and surging home prices has been fascinating to watch this year.”
The previous low for the year was April, which saw a median mortgage payment of $1,112. While that drop was caused by uncertainty at the onset of the COVID-19 pandemic, the November drop was driven by “in part a consequence of the Federal Reserve’s response to a struggling economy,” according to the report.
“We’ve seen mortgage rates drive unforeseen levels of homebuyer demand, which has pushed prices up by upwards of 15 percent in recent weeks,” Fairweather said. “The good news for those buyers who are persevering through a dearth of homes for sale and fierce bidding wars is that once you do land a home, today's sub-3 percent mortgage rates are largely cancelling out the high prices.”
The highest median price ($4.420) was in San Francisco.