Despite home prices beginning to pull back this year, would-be homebuyers are still willing to take on higher mortgage payments, as the median monthly payment listed on applications for home purchase loans jumped 14.1% in May from a year earlier to an all-time high of $2,165. This is due to the low housing inventory and high interest rates, but the forecast by Realtor.com calls for the average rate on a 30-year mortgage to drop to 6% by the end of the year, which could motivate more homeowners to sell and add more inventory to the market.
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