With rising house values, mortgage rates and inflation, it’s no wonder why so many Americans can’t afford to buy a home these days. “As Americans contend with historically high inflation, the combination of rising mortgage rates, elevated home prices and tight inventory are making the pursuit of homeownership the most expensive in a generation.” The April 2022 Freddie Mac report stated: That’s the highest average in more than ten years, and it could rise even higher over the coming months. On April 14, the mortgage-buying corporation Freddie Mac reported that the average rate for a 30-year fixed home loan had risen to 5%. Chart: Average 30-year mortgage rates | Source: Freddie Mac PMMS rose by double digits over the past 12 months alone. As mentioned earlier, the median house value in the U.S. Home-buying costs continue climb in 2022. Meanwhile Interest Rates Continue to Climb This might be a more accurate payment amount for those buying a first home in 2022, with a down payment closer to 6%. Using the same home price and mortgage rate data from earlier, but lowering the upfront investment to 6%, the average monthly mortgage payment would come out to $2,234. “However, in actuality the typical down payment for first-time buyers has ranged between six to seven percent since 2018.” First-time buyers don’t have the profits from a previous home sale to put toward their next purchase.Īccording to a January 2022 blog post from the National Association of Realtors: There’s an obvious reason for this difference. But first-time buyers tend to make smaller down payments, on average, when compared to repeat buyers. The NAR report cited earlier states that the median down payment among all home buyers was 12%. Even so, the above figures give us some sense of where the average lies in 2022. The amount of money put down, the length of the loan term, the borrower’s credit score, the property tax rate - these factors and more can influence the size of a homeowner’s monthly payment. So a typical home buyer in that high-priced housing market would pay a lot more than the average monthly mortgage payment above. Some home buyers in 2022 will end up with a much smaller or larger monthly payment, due to a number of variables.įor instance, the median home price in San Jose, California is more than four times the national median. Of course, this figure comes from average and median data for home prices, mortgage rates, and other housing-related costs. We ran those numbers through a mortgage calculator (along with insurance and taxes) to get a sense of the average or typical monthly mortgage payment for current home buyers.īased on the above parameters, a typical mortgage payment for a person buying a home in 2022 would come to around $2,071.
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