According to a report by Redfin, June housing market data showed a mix of good and bad news for prospective homebuyers, as home prices hit new record highs while monthly mortgage payments fell.
U.S. home prices hit a record high in June, with the median home sale price hitting $397,954, the biggest increase since March, as real estate agents reported a 5% drop in pending sales.
This new record has put home buying further out of reach for many potential homebuyers, a trend that's unlikely to change through the end of 2024, according to the First American Data & Analytics Real Home Price Index.
“Unfortunately, inflation remains persistent, leading to the Fed's 'higher for longer' stance and contributing to an increased outlook for mortgage rates, while home prices again showed a 'solid downward trend,'” said Mark Fleming, chief economist at First American Financial, parent company of First American Data & Analytics.
Redfin said home sales contracts in June fell by the most since February, while the median sales price was up 5% from last year.
But the good news for homebuyers is that there are more new homes on the market to choose from, Redfin reported. Also, monthly mortgage payments are down about $100 from their peak in April.
New listings rose 10% in June, the biggest increase in two months. More than 100,000 new listings came onto the market, up 9.9% from a year ago.
As of July 2, the average daily interest rate on a 30-year fixed mortgage is 7.13%. This latest reading is up from a three-month low of 6.97% recorded three weeks ago. Fortunately, the current figure is still far from the five-month high of 7.52% recorded in early May.
“While the ability to buy a home is likely to remain constrained for the remainder of 2024, mortgage rates are expected to fall in 2025, which will be good news for prospective homebuyers,” Fleming continued.