Homebuyers face higher mortgage payments even as demand surges in March

The typical monthly mortgage payment on a U.S. home rose 1.5% from February to $1,789, excluding taxes and insurance. Mortgage rates rose from 5.98% at the end of February to 6.38% in late March, according to Freddie Mac. The increase pushed borrowing costs higher just as home shopping season accelerated. Newly pending listings increased 4.6% year over year in March, reaching 281,546 — the second-highest monthly total since August 2022. Average daily page views per for-sale listing on Zillow were 32% higher than last March, indicating strong buyer demand. Home values rose 0.8% year over year in March, with the typical U.S. home valued at $365,545. The combination of higher mortgage rates, rising home values, and surging demand has increased the financial pressure on homebuyers entering the market in March.