Mortgage payments are up from a year ago but haven’t quite crossed the threshold many mortgage experts recommend that homeowners stick to. It’s often recommended homeowners don’t spend more than 30% of their income on housing costs. Currently, the average monthly mortgage payment for single-family homes typically requires 24.2% of a buyer’s income, in the three months through March, Realtor.com reported. This is down slightly from last quarter, but up more than 23% from last year.
Mortgage payments are up for numerous reasons, one being historically high home prices. Sellers are listing their homes for more than they're worth, a custom picked up during the pandemic housing boom. The median home price is now $434,000, up 6% year-over-year, according to Redfin. Fewer listings are causing prices to skyrocket, as buyers scramble to buy. Listings are still about 20% lower than before the pandemic, but increased 1.7% in April. "It’s not all bad news for homebuyers.
Due to rising home prices, inflation and interest rates, mortgage delinquencies are rising. Mortgage loan delinquencies increased to 3.94% at the end of the first quarter, according to the Mortgage Bankers Association’s National Delinquency Survey. The delinquency rate includes home loans that are at least one payment past due but doesn’t include those in foreclosure.
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