The typical mortgage payment is up 7.2% from last year and has increased by 103.1% since pre-pandemic
The typical mortgage payment is up 7.2% from last year and has increased by 103.1% since pre-pandemic, per Zillow.
According to Zillow, the monthly mortgage payment on a typical U.S. home has nearly doubled since January 2020, increasing by 96% in just four years.
Currently, a typical buyer will pay nearly $2,200 a month with a 10% down payment, exceeding the 30% of median income that was once considered affordable for housing costs in America.
With the 30-year fixed-rate mortgage hovering around seven percent, there seems to be little relief in sight.
“Half of first-time homebuyers are getting help from family and friends for the down payment, and 21% are co-buying with a friend or family member,” said Divounguy.
However, Eddie Seiler from the Mortgage Bankers Association suggests that there is some optimism. “Interest rates should steadily decrease. Hopefully, we’ll end the year around six percent,” said Seiler.
For a household earning the median income, it would take almost 8.5 years to save enough for a 10% down payment on a typical U.S. home, about a year longer than in 2020. As a result, half of first-time buyers report that part of their down payment came from a gift or loan from family or friends.