Median-priced US home purchase raises mortgage payment 85.3% for typical borrower, Realtor.com finds
SPY•Buying a median-priced U.S. home would raise typical mortgage holders’ monthly principal-and-interest payments 85.3%, to an estimated $2,468 from $1,332, assuming a 7.32% mortgage rate.
1. Payments rise sharply
Buying a median-priced U.S. home would raise typical mortgage holders’ monthly principal-and-interest payments by 85.3%, to an estimated $2,468 from $1,332 currently, assuming a 7.32% mortgage rate. In roughly one-third of the 100 largest metropolitan areas, the purchase would more than double existing mortgage holders’ monthly payments.
2. Effect of lower rates
Mortgage rates near 6% would make median-priced homes affordable for 50.2% of households, but payments would still be 61.7% above current levels.
