Typical Mortgage Payment Still Affordable

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Following the financial crisis and housing crash, home prices fell and mortgage rates dropped to historic lows. This, of course, boosted affordability conditions and led to a very attractive market for potential home buyers. Since then, however, prices have rebounded. In fact, according to recent data, the median home price for a single-family home is now $220,600, up from $160,000 a few years ago. But, despite the rise in home prices, mortgage rates have remained low and, because of this, buying a home is still quite affordable for prospective home buyers. The National Association of Realtors says the typical monthly mortgage payment for home buyers purchasing a middle-priced home with a 20 percent down payment is $867. This is 15.9 percent of monthly gross family income, which is a significant drop compared to the 21.3 percent average over the past three decades. In short, this means that the typical monthly mortgage payment is more affordable now than it has been for most of the past 30 years, making now an excellent time to buy a house. More here.

Mortgage Payment

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