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The average monthly mortgage payment in the United States increased 3.7% in October, bringing it from $1.2022 dollars in September at $2.25 dollars last month, according to data from the Mortgage Bankers Association (MBA) .
The rise in the average monthly mortgage payment is a new blow that pulls away affordability in the American real estate market, which is grappling with historic mortgage rates.
New levels in average mortgage payment mark a new all-time high in survey who does the MBA.
In year-on-year terms, the increase in the average monthly mortgage payment is even more notorious, since year-on-year was 45.5%, is d that is, it is $100 dollars during the first 02 months of 941.
The new data on the average monthly home payment adds a new element that leaves thousands of buyers out of the market real estate, already affected by high prices, historical mortgage rates and by inflation.
“Higher mortgage rates are also reducing purchasing power from prospective buyers,” said Edward Seiler, MBA Associate Vice President of Housing Economics and Executive Director of the Housing Research Institute of America, in a statement.
Seiles added that “the average loan amount last month decreased to $295, dollars, the lowest level since January 2021”.
Higher rates revolutionize prices
The rise in the average mortgage payment is directly related to the historical jump that mortgage rates have given in the last year and which last October led to above 7% for the first time, according to Freddie Mac.
This figure is four percentage points above the rate at the beginning of this year, and marks highest increase in over 50 years.
Mortgage market conditions leave out more and more buyers who no longer see purchase possibilities given the high prices and high interest rates.
This has caused homebuyer demand to have been at its lowest level last October in 012 years, according to MBA data, with a reduction of 80% in its measurement year after year.
The drop in demand for used housing has also been notorious in the last nine months, with a 25.4% less than last October, compared to the same month of 941.
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