Typical Mortgage Payment Is $135.48 Less Than in October

By the Numbers: A Striking Figure in Personal Finance News Today

$135.48

Finally, a little relief for homebuyers: A typical monthly mortgage payment on a newly-bought home last week was $135.48 less than in late October, thanks to mortgage rates falling from their recent peaks. 

The savings are a result of the recent decline in rates for a 30-year fixed mortgage, which dropped for a third straight week to 6.49%, according to data from the Mortgage Bankers Association (MBA) Wednesday. That’s well below the 7.16% average mortgage rate that was offered the week ending Oct. 21. The difference translates into significant monthly savings for homebuyers. The monthly mortgage payment for a median-priced home—$379,100, according to the National Association of Realtors—would be $1,914.94 this week versus $2,050.42 for the week ending Oct. 21 (assuming a 20% down payment). 

A lower monthly payment is welcome news for would-be homebuyers, who have faced soaring home prices since the pandemic began, and relentlessly higher mortgage rates since the beginning of the year. Those two factors have combined to make overall mortgage costs balloon to heights that have made homebuying unaffordable for many.

Mortgage rates, which had dipped below 3.00% in 2020 and 2021, have almost doubled since the beginning of this year by MBA’s measure. Rates typically move in the same direction as yields on 10-year Treasury bills, and those have risen as investor fears about inflation, and the Federal Reserve’s response to it, have intensified. Recent signs of easing inflation have cooled mortgage rates, but some economists warned the progress could quickly be reversed. 

Have a question, comment, or story to share? You can reach Diccon at dhyatt@thebalance.com.

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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
  1. Mortgage Bankers Association. “Mortgage Applications Decrease in Latest MBA Weekly Survey.”

  2. National Association of Realtors. “Existing Home Sales.”

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