The median U.S. home price rose 5.2% year over year this week, and mortgage rates hit their highest level since November 2023. Prices continue to rise partly because there are still serious buyers searching for homes.
The median U.S. home-sale price hit a record $383,725 during the four weeks ending April 21, up 5.2% from a year earlier–one of the biggest jumps since October 2022. The average weekly mortgage rate hit 7.1% this week, its highest level since November 2023, as it became clear the Fed would keep interest rates high longer than expected. High prices and mortgage rates drove the median monthly housing payment to a record $2,843, up 13% year over year.
Prices are soaring despite the fact that there’s more inventory than last year. New listings are up 10.2% year over year, though growth in listings may be losing momentum as stubbornly high rates solidify the lock-in effect. Prices are being buoyed by the fact that inventory remains low despite the recent improvement. Demand is holding up fairly well in the face of 7%-plus rates, though some indicators are starting to show a slowdown. Redfin’s Homebuyer Demand Index–a measure of requests for tours and other buying services from Redfin agents–is near its highest level in about eight months, but mortgage-purchase applications are down slightly (-1%) week over week.
“My advice to sellers is to price your home fairly. Even though sellers are getting top dollar at the moment, they should price competitively to attract buyers from the start and avoid having to drop their price as stubbornly high mortgage rates eat into buying budgets,” said Redfin Economic Research Lead Chen Zhao. “My advice for serious buyers who can afford today’s costs is to shop for your dream home and accept that this year is probably not the time to find a dream deal. Price growth may cool slightly in the coming months if mortgage rates stay high or rates might fall slightly–but overall housing costs are likely to remain elevated for the foreseeable future.”
For more on Redfin economists’ takes on the housing market, including how current financial events are impacting mortgage rates, please visit Redfin’s “From Our Economists” page.
Refer to our metrics definition page for explanations of all the metrics used in this report.
