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Redfin Reports High Housing Costs Are Keeping Homebuyers at Bay—But Price Relief Is in Sight

1. Median mortgage payment nationwide reached $2,860, nearing record highs. 2. Mortgage rates at 6.86% and home-sale prices rising significantly.

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Why Bearish?

High mortgage payments and rising rates typically decrease housing demand, affecting real estate companies like RDFN negatively. Historical data shows that significant rises in mortgage rates correlated with drops in home buying activity, impacting brokerage revenues.

How important is it?

The article presents direct information on mortgage costs, which are crucial factors affecting RDFN's performance. As a real estate brokerage, RDFN's business is intrinsically linked to housing market dynamics and pricing.

Why Short Term?

The immediate effect of rising mortgage rates and payments may deter buyers quickly, leading to decreased transactions. Short-term market conditions may show reduced activity in the coming months, aligning with recent trends.

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SEATTLE--(BUSINESS WIRE)--(NASDAQ: RDFN) — The median monthly mortgage payment nationwide was $2,860 during the four weeks ending May 25, up 3.6% year over year and just $25 shy of the all-time high. That's according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage. Housing payments are high for two reasons: The weekly average mortgage rate is 6.86%, the highest level in three months, and the median U.S. home-sale price is up 1.9% year over year. High costs.

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