Homebuyer budgets have been relatively flat compared with a year ago driven by high mortgage rates. However, it's a sign that home-price growth has "passed its peak and will slow in the coming months," according to a new report.
Budgets across the nation were up 0.3% in the three months ending April 30 compared with a year ago, according to an analysis of the average maximum budget set by Redfin.com users. That figure marks the slowest growth rate since June 2020, and also indicates that budgets are essentially flat from this time in 2021.
Although budgets haven't fallen, "the fact that budget growth has slowed so significantly is one sign among many that home-price growth will continue to slow as the year goes on," Redfin deputy chief economist Taylor Marr said.