The monthly mortgage payment went from $1,941 in September to $2,012 last October, according to the MBA.
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The average monthly payment for US mortgages rose 3.7% in October, taking it from $1,941 in September to $2,012 last monthaccording to data from the Mortgage Bankers Association (MBA).
The increase in the average monthly mortgage payment is a new blow drives away accessibility in the real estate market American, grappling with record mortgage rates.
The new levels in the average mortgage payment a new all-time high in the survey conducted by the MBA.
Since then, in annual terms, the increase in the average monthly mortgage payment has been even more evident year-over-year was 45.5%or $629 dollars during the first 10 months of 2021.
The new data on the average monthly home payment add a new element that excludes thousands of buyers from the real estate market, already penalized by high prices, historic mortgage rates and from inflation.
“Even higher mortgage rates reduce purchasing power of potential buyers,” said Edward Seiler, MBA associate vice president of Housing Economics and executive director of the Housing Research Institute of America.
Seiles added that “the average loan amount last month fell to $295,000, its lowest level since January 2021.”
Higher rates revolutionize prices
The increase in the average mortgage payment is directly related to the historic leap that mortgage rates have made in the last year and which last October brought above 7% for the first timeaccording to Freddie Mac.
This data is four percentage points above the rate earlier this year and marks the largest increase in more than 50 years.
The conditions of the mortgage market exclude more and more buyers who no longer see the possibility of buying given the high prices and high interest rates.
This caused homebuyer demand last October to be at its lowest level in 25 years, according to data from the MBA, with a 46% reduction in its measurement year-over-year.
Also note the decline in demand for used homes over the past nine months, with 28.4% less than last Octobercompared to the same month in 2021.
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