US Median Sales Price of Homes Hits Record High of $408,838

The median sales price of homes in the United States hit a record high of $408,838 for the four weeks ending June 28, real estate brokerage Redfin said in a July 2 statement.The sales price was up 2.5 percent from a year ago, the company said. Among the 50 most populous metros, San Francisco, California, registered the largest annual uptick in sales prices at 10.8 percent.This was followed by West Palm Beach, Florida; Pittsburgh and Philadelphia, Pennsylvania; and Detroit, Michigan—all of which saw price jumps of over 8 percent.Meanwhile, the median housing payment rose by 1.4 percent annually to hit $2,633 per month at a 6.49 percent mortgage rate, the first year-over-year increase since last October, the brokerage said, attributing it to higher home prices and mortgage rates.Home price growth picked up steam in May since April’s lower mortgage rates had triggered demand from buyers, Redfin said in a June 23 statement.“Even though there are many more home sellers than buyers in the market, the most desirable homes are still attracting multiple offers, driving up prices,” said Sheharyar Bokhari, a senior economist at Redfin.“Buyers who are waiting for prices to fall may not get much relief; instead, they may consider expanding their search area or negotiating for concessions—like mortgage-rate buydowns or closing-cost credits—from sellers.”The average weekly rate on a 30-year fixed-rate mortgage has been hovering near 6.5 percent since late May, according to Freddie Mac data. In the week ending Feb. 25, rates had dipped below the 6 percent level but then began climbing after the U.S.–Iran conflict broke out in late February.Rates were at 6.43 percent for the week ending July 1, the lowest level in seven weeks.Amid the slight decline in rates over recent weeks, the Market Composite Index, which measures mortgage loan application volume, rose marginally for the week ending June 26 compared to the previous week, according to a July 1 statement from the Mortgage Bankers Association (MBA).The index measures both applications to purchase homes and refinance properties. An index specifically measuring purchase applications rose by 1 percent.Joel Kan, deputy chief economist at MBA, said that the uptick in purchase activity offset a smaller dip in refinance applications.“Purchase applications remain ahead of 2025’s pace and have exhibited year-over-year growth for almost three months,” Kan said.Housing AffordabilityIn a June 24 statement, the National Association of Home Builders (NAHB) raised concerns about affordability issues impacting the overall housing market.Many potential homebuyers are still on the sidelines as higher construction costs, elevated mortgage rates, and limited purchasing power diminish the “pool of qualified buyers,” said Bill Owens, chairman of NAHB.Danushka Nanayakkara-Skillington, NAHB’s assistant vice president for forecasting and analysis, said that while builders were making price adjustments and offering incentives to support sales, many buyers are still priced out of the market.“A sustained reduction in financing costs would help improve housing affordability and strengthen housing demand. The trajectory of mortgage rates and improvements in housing affordability will be key factors determining whether demand stabilizes in upcoming months,” Nanayakkara-Skillington said.The Trump administration is taking certain actions to lower affordability challenges for prospective homebuyers.On June 23, the Department of Housing and Urban Development (HUD) announced measures to slash red tape to improve affordability for Americans seeking Federal Housing Administration-insured mortgages.The National Association of Realtors (NAR) applauded the move in a June 26 statement. Shannon McGahn, executive vice president of NAR, said the measure was an “important step” toward creating a more efficient regulatory framework.NAR said it “strongly supports policies that responsibly expand access to credit for qualified homebuyers while reducing unnecessary regulatory burdens that can delay transactions and increase costs.”“By improving the efficiency of the lending process, these updates can help strengthen housing affordability and create greater opportunities for Americans to achieve homeownership,” the association said.