U.S. home prices rebound with 1.5% year-on-year increase, amid rising mortgage rates

The median U.S. home-sale price has experienced a 1.5% year-on-year increase, marking the first uptick in nearly five months, according to Redfin. This growth coincides with the rise in average weekly mortgage rates, reaching their highest level since November 2022. As a result, the typical homebuyer's monthly payment has reached a near-record-high of $2,627, highlighting the financial implications for prospective buyers in the current real estate market.

According to Redfin, a homebuyer with a $3,000 monthly budget can currently afford a $450,000 home at today's average interest rate. However, this buyer has lost $30,000 in purchasing power since February, when they could have bought a $480,000 home with a lower interest rate.

Rising prices are attributed to limited housing supply, with new listings down 27% year-over-year and the total number of homes on the market down 14%. Despite relatively low demand, prices continue to rise. However, recent economic news on inflation suggests a potential decline in mortgage rates, which could provide relief for buyers.

The housing market continues to experience a decline in active listings, dropping 14.4% from the previous year, the largest decrease since March 2022. The months of supply, indicating the time it would take for the current inventory to sell, reached 2.8 months, the highest level in nearly three months.

Homes that went under contract within the first two weeks on the market remained consistent at 30.5%. The median number of days homes spent on the market was 27, up from 21 days a year earlier. Additionally, the percentage of homes selling above their list price decreased to 36.8%, while the average sale-to-list price ratio was 100.1%.

Next (Strong labour market eases concerns of downturn in Australia's mortgage market)

U.S. home prices rebound with 1.5% year-on-year increase, amid rising mortgage rates

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