SANTA CLARA, Calif.,
March 13, 2018 /PRNewswire/
-- Rising home prices and steadily increasing interest rates
have pushed the average monthly mortgage payment up nearly 13
percent nationally over the past year, further challenging home
buyers this spring, according to a new analysis released today by
realtor.com®, a leading online real estate
destination.
U.S. home listing prices on realtor.com® have
increased 10 percent year over year; while interest rates on a
30-year fixed-rate mortgage have increased 28 basis points during
the same time period, increasing the monthly mortgage payment of a
median price home by an additional $168 a month.
A realtor.com® analysis of the top 20 housing
markets revealed monthly mortgage payments have increased
dramatically in five markets, where home prices are rising faster
than the national average. The monthly mortgage payment for a
median priced home will increase an average of $449 in Seattle,
$378 in San
Francisco, $363 in
Los Angeles, $242 in San
Diego, $236 in Minneapolis and $213 in Atlanta.
(A complete list of the top 20 markets follows.)
"Buyers can expect to see more of their paychecks go to their
mortgage payments this year," said Danielle
Hale, chief economist for realtor.com®.
"Tight inventory has limited options for buyers and sent home
prices soaring in many markets. Now, home buyers will also have to
factor in higher mortgage rates."
"This spring's home buyers will have to decide: do they give up
some desired home features to get into that lower price range, or
do they dig deeper into their wallets?" she added.
Although rising interest rates play a role, Hale said, the
majority of the payment increase can be attributed to the housing
market's prolonged inventory shortage, which has pushed home prices
above pre-recession levels in most markets. In the top 20 markets
combined, 64 percent of the incremental payment increase is coming
from a rise in prices and a shift toward more expensive homes, a
dynamic that will further challenge first-time buyers.
"Despite mortgage rates still being historically low, the
combination of higher prices and rising rates, will further
challenge trade-up and first-time buyers, usually millennials or
gen-'X'ers. They will have to borrow more money at a higher rate to
close on a home in this market," Hale said.
Year-Over-Year Difference in Mortgage Payments for the U.S.
and Top 20 Largest Markets
|
Mortgage Payment
Difference
YOY
|
Mortgage Payment
Increase
YOY
|
Monthly Payment Feb.
2018
|
Monthly Payment Feb.
2017
|
2018 Med HH
Inc
|
Median Listing
Price Feb 2018
|
United
States
|
$168
|
12.7%
|
$1,486
|
$1,318
|
$61,045
|
$274,900
|
Seattle
|
$449
|
19.2%
|
$2,792
|
$2,343
|
$82,186
|
$527,470
|
San
Francisco
|
$378
|
8.6%
|
$4,754
|
$4,375
|
$97,974
|
$899,000
|
Los
Angeles
|
$363
|
10.5%
|
$3,828
|
$3,465
|
$69,330
|
$723,972
|
San Diego
|
$242
|
7.3%
|
$3,567
|
$3,324
|
$73,550
|
$674,489
|
Minneapolis
|
$236
|
13.6%
|
$1,970
|
$1,734
|
$76,791
|
$361,950
|
Atlanta
|
$213
|
15.4%
|
$1,596
|
$1,383
|
$65,167
|
$307,493
|
Riverside
|
$152
|
8.2%
|
$2,004
|
$1,852
|
$62,190
|
$379,000
|
Phoenix
|
$144
|
9.3%
|
$1,689
|
$1,545
|
$60,641
|
$332,000
|
Miami
|
$132
|
6.8%
|
$2,083
|
$1,950
|
$55,037
|
$385,000
|
Denver
|
$130
|
5.0%
|
$2,746
|
$2,616
|
$75,489
|
$543,000
|
Chicago
|
$126
|
8.4%
|
$1,626
|
$1,500
|
$69,911
|
$282,447
|
Houston
|
$113
|
6.0%
|
$1,974
|
$1,861
|
$67,225
|
$321,396
|
St. Louis
|
$106
|
11.7%
|
$1,009
|
$903
|
$62,531
|
$189,900
|
Philadelphia
|
$101
|
8.0%
|
$1,367
|
$1,266
|
$70,516
|
$236,200
|
Detroit
|
$98
|
9.6%
|
$1,121
|
$1,023
|
$60,060
|
$204,500
|
Boston
|
$97
|
3.7%
|
$2,702
|
$2,605
|
$85,974
|
$499,900
|
Dallas
|
$94
|
4.6%
|
$2,149
|
$2,055
|
$68,128
|
$349,900
|
Baltimore
|
$92
|
6.4%
|
$1,530
|
$1,438
|
$77,704
|
$285,500
|
Tampa
|
$82
|
6.1%
|
$1,422
|
$1,340
|
$53,358
|
$262,823
|
Washington
D.C.
|
$31
|
1.5%
|
$2,171
|
$2,140
|
$99,400
|
$424,950
|
About realtor.com®
Realtor.com® is the trusted resource for
home buyers, sellers and dreamers, offering the most comprehensive
source of for-sale properties, among competing national sites, and
the information, tools and professional expertise to help people
move confidently through every step of their home journey. It
pioneered the world of digital real estate 20 years ago, and today
helps make all things home simple, efficient and enjoyable.
Realtor.com® is operated by News Corp [NASDAQ:
NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a
perpetual license from the National Association of
REALTORS®. For more information, visit
realtor.com®.
Contact:
Lexie Puckett Holbert:
lexie.puckett@move.com
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SOURCE realtor.com