LOS ANGELES — Homebuyers who can afford to bypass the highest mortgage rates in two decades are increasingly forgoing financing and paying all cash.
Bypassing mortgage rates: Share of US homes bought with cash hits highest level in nearly a decade
Homes purchased entirely with cash, which means there was no reference to a mortgage on the deed, accounted for 34.1% of all sales in September. That’s up from 29.5% a year earlier and the highest share in nearly a decade, according to a Redfin analysis of home sales in 40 of the nation’s most populous metropolitan areas.
Still, sharply higher home loan borrowing costs, a dearth of homes for sale and rising home prices have dampened home sales overall, which has helped give a boost to all-cash transactions’ portion of all home sales.
Even as their share of all sales increased, the number of all-cash transactions in September fell 11% from a year earlier, Redfin found. In contrast, home sales overall fell 23% in the same period.
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