Rising Mortgage Costs Remain Below 2006-07 Peak

Dated: 09/25/2018

Views: 123

September 24, 2018

With home prices mostly holding to an upward trend, more owners are facing rising mortgage costs. But even so, homeowners are still paying less in mortgage payments than they did in 2006 and 2007, when mortgage costs peaked, according to research from real estate data firm CoreLogic.

The typical mortgage payment nationwide in June rose 15.1 percent year over year, according to the report. On a metro level, increases in mortgage payments ranged from 22.5 percent in Las Vegas to 9.2 percent in New York. CoreLogic’s “typical mortgage payment” reflects the monthly amount a borrower would have to qualify for in order to get a mortgage to buy a median-priced home. (It does not include taxes or insurance costs.)

When adjusted for inflation, “payments have trended higher in all of the top 10 metros over the last three years, but they remained below peak levels this June in all but Denver,” CoreLogic notes.

CoreLogic researchers note that mortgage payments still remain below records in most of the country because mortgage rates in June 2006 were about 6.7 percent. Now the average mortgage rate is about 4.6 percent. Further, “the nationwide typical mortgage payment’s high point in 2006 reflects an abundance of subprime and other risky home financing products back then—products no longer widely available—that allowed home buyers to stretch to their financial max,” CoreLogic researchers write on the firm’s blog, CoreLogic Insights. “That created what some people consider an artificial price peak.”

Source: 

Latest Blog Posts

7 Important Repairs to Make Before Selling A House

As a smart seller, you’ll want your home in tip-top shape — but you don’t want to eat into your profits by overspending on home improvements. You won’t be around to enjoy

Read More

Christmas Light Safety Tips: Did You Deck Your Halls the Right Way?

These Christmas light safety tips will help you get in the holiday spirit and reduce your risk of fire or electric shock injuries. There's nothing like a twinkling strand of Christmas lights to

Read More

Why Buy A Home This Winter? 4 Reasons!

Here are four great reasons to consider buying a home today instead of waiting.1. Prices Will Continue to RiseCoreLogic’s latest Home Price Insight report revealed that home

Read More

The Everything Guide to Buying Your First Home

So you’re thinking about buying your first home. Your very own house (and mortgage). A place to call — and make — your own.It’s a big move, literally and figuratively. Buying

Read More