The median monthly mortgage payment is $2,742, up 0.4 percent year-over-year — the first increase in nearly six months — according to a report from Redfin.
Housing payments are climbing because the Iran war and rising oil prices have pushed the weekly average mortgage rate up to a six-month high of 6.38 percent. Daily average mortgage rates rose as high as 6.64 percent at the end of last week. Home-sale prices are a factor, too; the median home-sale price rose 2.1 percent from a year earlier during the four weeks ending March 29 — the biggest uptick in a year.
High costs, along with economic uncertainty from the Iran war, have sidelined some would-be homebuyers. Pending home sales declined 1.2 percent year-over-year, and mortgage-purchase applications fell 3 percent week-over-week. The typical home spends 53 days on the market before going under contract, five days longer than last year.
On the selling side, new listings are ticking up; they rose 1.7 percent year-over-year. Overall, there are 630,000 more home sellers than buyers in the market — the biggest gap in records dating back to 2013. Redfin agents say that with more sellers than buyers in most metro areas, it’s more important than ever for sellers to prepare their home to make a strong first impression.
“My advice for sellers is to remember you’re selling the dream of homeownership,” Hazel Shakur, a Redfin Premier agent in the Washington, D.C. area, said in a release. “When house hunters walk through the door, it should look good, smell good and give the impression that every room is orderly. Buyers should be able to visualize what life is going to be like living in the home. And it goes beyond cosmetics: Some buyers are walking away during the inspection period if they uncover an issue, so sellers should make sure they have taken care of basic maintenance and repairs before listing.”