The median mortgage payment on a newly purchased home fell to a low for 2020 in November, despite sellers valuing homes at an all-time high, Redfin reported.
The nationwide average mortgage payment in November was $ 1,094, down from $ 1,124 in October and peaked in 2020 at $ 1,163 in February. The median list price for November was $ 336,000.
The low payment amount in November was due to an average mortgage rate of 2.77% for the month, according to Freddie Mac data cited in Redfin's report.
"The relationship between historically low mortgage rates and rising property prices has been fascinating this year," Redfin chief economist Daryl Fairweather said in a press release.
"We saw mortgage rates unanticipated home buyer demand, driving prices up more than 15% in the past few weeks. Good news for those buyers facing a shortage of homes and homes for sale Suffering from fierce bidding wars Once you land a home, today's mortgage rates below 3% largely cancel out the high prices, "Fairweather continued.
November was also the low point in 2020 for the middle newly purchased home in 35 of the 50 largest metro areas in the country. This list includes three of the four highest median paying markets in November, all in California: San Francisco at $ 4,420, San Jose at $ 3,828, and San Diego at $ 2,128.
The only exception within this group of markets was Los Angeles. The median payment of this market was at $ 2,382 in April, the low of the year. Last month, the median payment in Los Angeles was $ 2,453.
At the other end of the scale is Detroit, where the average monthly payment in November of $ 491 was the lowest for a subway in the country that month. In both January and February before the pandemic broke out, the monthly payment for a new purchase in this Michigan metropolitan area was even lower at $ 438 and $ 483, respectively.