All-cash home purchases at lowest point in 13 years

All-cash home purchases at lowest point in 13 years

All-cash home purchases at lowest point in 13 years
Record low mortgage rates have incentivized home buyers to finance their purchases rather than pay cash, according to a new report from Redfin. All-cash home purchases accounted for 24.3 percent of homes sold in 2020, down from 25.3 in 2019 and the smallest portion of cash sales since 2007.

All-cash home purchases topped out in 2013 when over a third of all home sales that year were bought without financing.

Mortgage rates have dropped to several record lows over the last year making home loans much more affordable. Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.