Monthly Mortgage Payments Record First Annual Decline in 4 Years

The median monthly mortgage payment was $2,587 during the four weeks ending Aug. 18, according to new data from Redfin (NASDAQ: RDFN). This marked the lowest level since February and a 0.1% dip from one year ago – as well as the first time in four years that monthly payments have posted any decline at all.

Redfin attributed the slight decline to falling mortgage rates and a buyer confidence that rates will not rebound back to the 7% mark or higher. Redfin’s Homebuyer Demand Index, which measures requests for tours and other buying services from Redfin agents, is up 4% over the last week to its highest level in two months. Further fueling buyer confidence is the increase in available properties for sale – new listings are up 3.4% year-over-year and the total number of homes for sale is up 18%.

“Over the last two weeks, I’ve seen momentum build and I’ve felt clients get more excited about the prospect of buying or selling a home,” said Gregory Eubanks, a Redfin Premier agent in Los Angeles. “That stems from encouraging economic news and speculation that the Fed is going to cut interest rates in September. Some people are actively searching and listing their homes right now, and others are still hoping rates drop more significantly before making a move.”