Expert Shares Good News for Home Buyers
Mortgage rates have been all the talk this past week, but according to a report out on Jan. 4, the median U.S. monthly housing payment is making waves, too.
According to research from Redfin, that median U.S. monthly housing payment fell to $2,365 during the four weeks ending on Jan. 4, which is down 4.7% from the same time last year and marks the lowest amount since the beginning of 2024.
So, why did monthly payments fall? According to Redfin, it's because the weekly average mortgage rate fell to 6.15% last week, marking the lowest rate in more than a year.
What This Means for Those in the Housing Market
While pending home sales are down 6.7% year over year, according to Redfin, it's not all doom and g loom. Redfin economists say sales will likely pick up later this year.
"The housing market is in its holiday hangover season," Chen Zhao, Redfin's head of economic research, said. "Prospective homebuyers are focused on getting back into work and school mode rather than hunting for houses–and in some parts of the country, snowy or wet weather is an obstacle."
He added, "With mortgage rates and housing payments meaningfully lower than they were a year ago, we may see some buyers emerge in the coming weeks–and if buyers come, sellers are likely to follow."
Homebuyer Tips
Whether you're looking to buy now or sometime this year, the experts at the National Association of Relators have some tips.
One is to absolutely be ready to move when you find that dream house. "This is especially true in markets with a low inventory of homes for sale," they said. "It's very common for home buyers to miss out on the first home they wish to purchase because they can't act quickly enough."
They also suggest to make a wish list of must-haves in a home. "Take your time and write down what you want, including a wide range of factors that matter to you—from noise levels to house layout to number of bedrooms and bathrooms," they said. "Rank items, or prioritize them by dividing them into two categories—wants and needs."
Rocket Mortgage adds to consider future resale value, stating, "While your home is where you’ll be living your life and pursuing your share of the American Dream, it’s also important to think about pragmatic/financial issues, such as the home’s future resale value."