{"id":251,"date":"2024-04-25T13:44:11","date_gmt":"2024-04-25T13:44:11","guid":{"rendered":"http:\/\/filipzajac.me\/?p=251"},"modified":"2024-05-06T03:00:32","modified_gmt":"2024-05-06T03:00:32","slug":"the-cost-of-buying-a-home-has-hit-an-all-time-high","status":"publish","type":"post","link":"http:\/\/filipzajac.me\/index.php\/2024\/04\/25\/the-cost-of-buying-a-home-has-hit-an-all-time-high\/","title":{"rendered":"The cost of buying a home has hit an all-time high"},"content":{"rendered":"
It is more expensive than ever to buy a home in the U.S., according to a new report<\/a> from the real estate company Redfin.<\/p>\n The median home price hit a record $383,725 during the four-week period ending April 21. That\u2019s up 5.2 percent from a year ago, Redfin found, one of the largest leaps in home prices since October 2022.<\/p>\n The average 30-year fixed mortgage rate hit 7.1 percent this week, the highest it’s been since November 2023. Mortgage rates dipped briefly at the end of last year after the Federal Reserve signaled it would cut interest rates this year, but they have steadily climbed as strong economic data has extended the timeline for those initial rate cuts.<\/p>\n The median monthly housing payment also jumped to a record $2,843, up 13 percent from the same period last year.<\/p>\n Chen Zhao, the economic research lead at Redfin, said prospective buyers should \u201caccept that this year is probably not the time to find a dream deal.\u201d<\/p>\n \u201cPrice growth may cool slightly in the coming months if mortgage rates stay high or rates might fall slightly \u2014 but overall housing costs are likely to remain elevated for the foreseeable future,\u201d Zhao said.<\/p>\n The Fed is not expected to start cutting interest rates until September, according to the CME Fedwatch Tool<\/a>, which means borrowing costs including mortgage rates will likely remain elevated for some time.<\/p>\n Shelter costs are one of the indexes driving stubbornly sticky inflation, accounting for more than 60 percent of annual “core” inflation, according to the latest consumer price index (CPI). While inflation fell to 3.5 percent year over year in March from its 9 percent peak in June 2022, the central bank is not confident it is on a smooth path to its 2 percent goal and is expected to hold interest rates at the current range of 5.25 percent to 5.5 percent when it meets next week.<\/p>\n