The monthly mortgage payment on the median-priced home is up 38% from last year, according to a Redfin analysis, released on Thursday, of mortgage rates and MLS data on asking prices.
State of play: The housing boom is entering a different phase now. Where once, low mortgage rates helped offset surging home prices, now, fast-rising rates are putting homes further out of reach for buyers.
The bottom line: This is going to spook a lot of potential homebuyers and is a sign of cooling from the frenzy of the past couple of years. But because home inventories are still at record lows, don't expect prices to come down very much.
- "[T]he housing market is still tilted further in sellers' favor than at any time in history," said Redfin chief economist Daryl Fairweather in a statement yesterday.