Report: Cash transactions accounted for over 33% of home purchases in February.

In February, over one-third of homes were purchased with cash as mortgage rates remain high, nearing the record high of 38% in 2013. Despite a slight decrease from the peak rate in October, mortgage rates are still elevated compared to pandemic lows. Home prices have increased by 6.6% from the previous year, leading to larger down payments being made by buyers. The median down payment for a house was $55,640 in February, up 24.1% from the year before. However, many buyers, especially first-time home buyers, cannot afford all-cash purchases or larger down payments, widening the wealth gap between different groups of people. Redfin experts note that high mortgage rates are exacerbating this gap and making homeownership inaccessible to many.

– Over one-third of homes purchased with cash in February
– Mortgage rates remain high, nearing record levels
– Home prices increased by 6.6% from the previous year
– Median down payment for a house was $55,640 in February, up 24.1% from the year before
– Many buyers, especially first-time home buyers, cannot afford all-cash purchases or larger down payments
– High mortgage rates widening the wealth gap between different groups of people
– Homeownership becoming increasingly inaccessible for many due to high prices and rates



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