(NewsNation) — A typical monthly housing payment hit a record high of $2,807 during the last four weeks ending March 23, according to a study by Redfin.
The 5.3% increase is a result of the average cost of home prices going up roughly 3% annually and mortgage rates sitting at 6.6%.
“Buyers are cautious because they’re worried about the economy and potential layoffs, and they’re wondering if mortgage rates will come down later this year. But because other buyers are cautious too, some house hunters are getting homes for under asking price,” said Kimberly Freutel, a Redfin Premier agent in Sammamish, Washington.
The realtor suggested potential buyers stay within their comfort zone when making a purchase offer.
“If you love a home and you see yourself living there for at least four or five years, make an offer you’re comfortable with, even if it’s a little below list,” said Freutel. “Don’t assume it will escalate out of your price range, because the seller might actually take it. I’m asking my clients, ‘Would you be sad if this home ends up selling for less than asking price to someone else?’”
The average rate on a 30-year mortgage in the U.S. fell slightly last week, a welcome reversal for homebuyers in what’s traditionally the housing market’s busiest time of the year.
The rate fell to 6.65% from 6.67% the previous week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.79%.
This is the first decline in the average rate after rising two weeks in a row. The average rate has trended lower since mid-January, when it climbed to just over 7% — a relief for house hunters struggling to afford a home after years of soaring prices.
Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loans, rose last week, however, pushing the average rate to 5.89% from 5.83% the previous week. A year ago, it averaged 6.11%, Freddie Mac said.
The Associated Press contributed to this report.
