Rising Rates, Prices Mean Record Home Mortgage Payments

Off the Charts: The Visual Says it All

Worried person calculating budget and finances

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Buying a house now comes with a record-high monthly mortgage payment, new data shows.

Between rapidly rising home prices and spiking mortgage rates, average monthly mortgage payments have never been higher in data going back to 2000, real estate company Zillow said in a report this week. In fact, a buyer purchasing a typical home in January was staring down the barrel of a $1,162 monthly mortgage payment (assuming a 30-year fixed-rate mortgage and a 20% down payment). That’s up 31% over the last year, as shown in this chart.

Monthly mortgage payments for homebuyers are now even higher than the previous peak in 2006 when interest rates were 6.75%, Zillow calculated. With declining affordability and an extreme lack of homes for sale, it’s little wonder that buyers have grown increasingly discouraged about house hunting.

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