The typical American homebuyer’s monthly mortgage payment has increased by almost 20% over the past year, according to a recent report from Redfin.
The report found that the median monthly mortgage payment for a homebuyer in July 2022 was $2,605. This is up from $2,100 in July 2021.
The increase in mortgage payments is due to a number of factors, including rising interest rates. The average interest rate for a 30-year fixed mortgage was 7.5% in July 2022, up from 5% in July 2021.
Despite the increase in mortgage payments, national home prices have remained relatively flat over the past year. The median home price in July 2022 was $380,250, up just 3.2% from July 2021.
This is due to a number of factors, including a limited supply of homes on the market. The total number of homes for sale in July 2022 was down 19% from July 2021.
The housing market is expected to remain volatile in the coming months. Rising interest rates are likely to continue to cool demand, but low inventory could keep prices from falling significantly.
Here are some additional details from the report:
- The increase in mortgage payments has been felt most acutely in states with high home prices, such as California and New York.
- The increase in mortgage payments has also made it more difficult for first-time homebuyers to enter the market.
- The housing market is expected to remain volatile in the coming months, but it is possible that prices could start to fall as interest rates continue to rise.
If you are thinking about buying a home, it is important to factor in the rising cost of mortgage payments. You should also be prepared for a limited supply of homes on the market.