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A third of home buyers are paying all cash as mortgage rates stay high, per Redfin. contributing to increased inequality in the housing market, with a growing number of homebuyers opting for all-cash transactions. According to the analysis, approximately 34.1% of homebuyers in the U.S. paid in all cash in September, the highest share since 2014. This trend is seen as a response to the elevated mortgage rates, with buyers choosing to avoid high-interest home loans. Redfin's study, based on county-level data across 40 major metropolitan areas, indicates that high mortgage rates are deepening the divide between homeowners and those unable to enter the market. The 30-year mortgage rate, although seeing a recent drop, still averages at 7.61%. Sheharyar Bokhari, a senior economist at Redfin, notes that affluent Americans can mitigate the impact of high mortgage rates by paying in cash, reducing housing costs and allowing them to retain more money. However, this exacerbates inequality, as those sidelined by high prices and rates not only struggle to afford a home but also miss out on building wealth through homeownership. While the share of all-cash sales is not as high as during the pandemic, Redfin's data show a year-over-year decrease of 11%, primarily due to the current slower market due to lower inventory. Regular buyers, unable to pursue all-cash deals, are compensating by putting down higher down payments, with the typical homebuyer putting down 16.1% in September, the highest since June 2022. The metropolitan areas where all-cash purchases were most common include Cleveland, West Palm Beach, and Jacksonville, while expensive markets like Oakland, San Jose, and Seattle saw the least common occurrence of all-cash deals.