![]() Median monthly mortgage payment in 2019: $1,188.Median monthly mortgage payment in 2021: $1,491 (25.5% greater than in 2019).Use our Better Mortgage’s amortization schedule to see how much you can save on your mortgage by paying it off early. LOOKING FOR SAVINGS? Paying more than your minimum mortgage payment will result in significant savings down the road. An uptick in median home sales prices means buyers are paying more for houses, which in turn has caused monthly mortgage payments to be significantly higher in Wise County than they were just two years ago. In 2020, Wise County had the biggest increase in home price appreciation of any county in north Texas, and the pandemic only added to the rise. The DFW metro area has exploded in population and median home price in recent years, causing the median monthly mortgage payment to jump significantly in the last two years. Wise County may not sound familiar, but this tiny county is part of the massive Dallas-Fort Worth-Arlington metro area-one of the largest in the state. Median monthly mortgage payment in 2019: $839.Median monthly mortgage payment in 2021: $1,053 (25.5% greater than in 2019). ![]() The 2021 calculations also don’t take into account any other costs besides principal and interest. It then calculated the monthly mortgage payment at a 30-year fixed-rate mortgage with 10% down at a 3% interest rate. To determine the 2021 median home value and mortgage payment data, the National Association of REALTORS applied the Federal Housing Finance Agency’s House Price Index to the 2019 median home values from the American Community Survey. The monthly payments in this story do not include other costs of property ownership, such as property taxes, homeowner’s insurance, or HOA fees. ![]() ![]() To determine the 2019 median mortgage payments, Better took the median home value for every county from the American Community Survey 2019 5-Year Estimates and calculated the monthly mortgage payment at a 30-year, fixed-rate mortgage with 10% down at a 3.94% interest rate. This was done to determine where median monthly mortgage payments have increased the most between 20. Census Bureau’s American Community Survey. But where exactly is it happening-and why?īetter, an online lender and homeownership platform with a free mortgage calculator, analyzed 2021 Q2 data from the National Association of REALTORS Housing Statistics and the 2019 U.S. In fact, we’ve already seen that trend occur in many markets due to the housing issues we’ve faced over the last two years. If this happens, it will likely cause a big uptick in the average monthly cost of mortgage payments in certain markets across the nation. Purchasing a home will become even more expensive if predictions of rising interest and mortgage rates from inflation materialize. In fact, future homebuyers could be in for a surprise as home prices are expected to stay high until well into 2022. ![]() But while things may cool off a bit more over the next few months, the slower housing market pace may not translate to cheaper home prices. That said, there are signs that some of the frenzied home buying has started to slow. Most markets are still experiencing severe housing shortages-and while there have been bids to build more housing, the ongoing supply chain issues have made it nearly impossible to meet the increased demand. We’re now nearly two years into the global pandemic, but thus far, the frantic home-buying trends we saw at the start of the public health crisis have persisted. Buyers, suddenly free to work from any location, began snatching up homes in nearly every market and leaving housing shortages and vastly increased home prices in their wake. What started with an uptick in buying after mortgage rates fell to record lows quickly became a home-buying frenzy as the shift to remote work took hold. From tiny coastal towns in Maine to massive California metros, the national housing market has been roaring since the start of the pandemic. ![]()
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