Mortgage Payment Amounts
Just how high are mortgage payments? Obviously, the biggest story in US real estate over the past 18 months has been the rise of mortgage interest rates. Now sitting over 7%, let’s see how it has impacted monthly mortgage payments. As of July, 51% of new mortgages have a principal and interest payment of more than $2,000. That doesn’t include taxes and insurance. Just two years ago, only 18% of buyers had that level of payment. If we look at the $3,000 payment threshold, 23% of new loans in July hit that mark, up from just 5% two years ago. So while we’ve all heard how rates are increasing, it’s noteworthy to see how much it has actually changed the monthly payments of home buyers. I got this data from a firm called Black Knight.