Monthly Mortgage Payment has Declined for the First Time in Four Years - Real Estate, Updates, News & Tips
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Monthly Mortgage Payment has Declined for the First Time in Four Years

For the first time since 2020, the median U.S. monthly mortgage payment has declined. During the four weeks ending August 18, the $2,587 figure reached its lowest level since February and was down 0.1% from a year ago, according to Redfin.

The downward trend is likely due to falling mortgage rates, which are sitting at a 15-month low of just below 6.5%, down from a peak of 7.2% in May. Although home prices remain near record highs, up 3.6% year-over-year, house hunters are showing renewed interest in the market as rates stabilize.

Touring activity is up 9% from the start of the year, as of Aug. 19, and Google searches for 'home for sale' are up 8% from a month earlier, said Redfin. An uptick in home tours hasn't yet translated to more sales, however. Pending home sales are down 5.3% year-over-year, the biggest decline in nine months with the exception of the four weeks ending August 4, and mortgage-purchase applications are down 8%. The firm noted pending sales are a lagging indicator, and they may improve as home tours pick up.

Source: globest.com

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