Mortgage Payments See Steepest Drop in a Year As Rates Decline, Sparking Homebuyer Interest
• Monthly mortgage payments dropped by $372 from October to December, reaching their lowest level in nearly a year, according to Redfin data. This coincides with falling mortgage rates.
• The average 30-year fixed mortgage rate has fallen to 6.76%, down from over 8% in October. This provides some relief from sky-high rates earlier in 2022.
• Homebuyer demand is ticking up - Redfin's demand index rose 10% month-over-month to its highest level since August. More home tours and offers indicate renewed interest.
• However, median home prices are still up 4.4% annually. Redfin predicts a small 1% price decline this year - the first since 2012.
• Despite recent declines, monthly mortgage payments remain over 5% higher than a year ago. Affordability is still an issue for many buyers.