Mortgage News May 11, 2023
A new report from LendingTree has revealed that despite fluctuations in mortgage rates over recent months, new buyers are still likely to face high mortgage payments. This is particularly true in light of the persistently high cost of homes in the US.
Analyzing data from the LendingTree platform across all 50 states between January 1 and March 31, 2023, the report found that mortgage payments for recent borrowers in every state were in excess of $1,700 per month on average.
While these figures may seem staggering, it’s worth noting that not all borrowers will be making payments of this size. Many homeowners have fixed-rate mortgages that were secured before rates began to rise dramatically in 2022. Thus, the monthly payments are unlikely to be as high as those paid on more recent loans.
For comparison, the US Census Bureau estimates the median housing cost for homes with a mortgage to be $1,672 per month, which includes utilities and insurance fees. This figure is a far cry from the national average monthly mortgage payment for loans offered in 2023, which LendingTree reports to be $2,317.
The report highlighted significant variances between states when it comes to loan costs for homeowners. Hawaii was found to be the state with the highest average monthly payments at $3,077. Washington, DC followed closely, with an average payment of $2,931 per month. On the other end of the spectrum, West Virginia was found to have the lowest average monthly payment at $1,143.
In recent years, there has been an ongoing trend of skyrocketing home prices, which has made securing real estate more difficult for buyers. At the same time, the cost of borrowing has continued to increase, exacerbating the problem. The LendingTree report is a sobering reminder of the challenges new buyers face when it comes to securing an affordable home loan.
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