Last year, a 30-year fixed rate mortgage was around 3 percent. The monthly mortgage payment on the average $270,000 home, assuming a 20-percent down payment, would have been $1,200 per month. (I'm not touching any of the assumptions in the mortgage calculator.)
This year, this down payment would be $14,000 more and the monthly mortgage payment $1,760, an increase of 47 percent.
If the homebuyer could only afford $1200 per month, they can only afford a house that is around $210,000, a decline of about 22 percent.
Home affordability is in a death spiral.
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