Home Affordability

What a difference a few years makes.  I usually don’t talk about home affordability because it’s hard to do in less than a minute, but let me throw a few numbers at you.  These figures presume a buyer purchasing a median priced resale home in Central Texas with a 30-year mortgage and a 10% down payment.  If they bought a home in March 2020 the principal and interest payment was $1,362.  Today, a buyer purchasing a median priced home in Central Texas would have a monthly principal and interest payment of $2,775.  That’s slightly more than double in four years.  That’s the impact of not just the increase in mortgage rates, but also the price appreciation in that time.  This is one reason that the Austin real estate market continues to underperform versus the rest of the country. 

Post a Comment