From our Friends at Florida Realtors
CHICAGO – Sept. 17, 2018 – Homebuyers can expect to pay about $168 extra per month for their mortgage this year, according to a realtor.com study that compared February 2018 to February 2017.
The increase is based on a median-priced home of $274,900, with the increased cost due largely to rising home prices and interest rates, according to the analysis. The average monthly mortgage in February was $1,486, up from $1,318 in February 2017.
But location can have a big impact. For example, Seattle buyers saw their payments jump by $449 a month because Seattle prices have risen more than 19 percent year-to-year.
In the analysis of 20 housing markets, five markets besides Seattle saw the biggest increases in mortgage payments: San Francisco ($378); Los Angeles ($363); San Diego ($242); Minneapolis ($236); and Atlanta ($213).
The bulk of the payment increases were due to higher home prices more than higher mortgage rates, says Danielle Hale, realtor.com's chief economist.
"For many buyers, it will be a choice of selecting a lower-priced home, and perhaps giving up some desired home features to get into that lower price range, or digging deeper into their wallets, if they want to close," Hale says.
Matthew Gardner, chief economist of Windermere Real Estate, says the rise in mortgage rates may cause some homebuyers to be in more of a rush.
"People who are thinking about buying, if they're seeing rates rising, they are going to try to get into the market sooner rather than later," Gardner told realtor.com. "It's going to be remarkably competitive. There's going to be more buyers than there will be sellers."
Source: "With Home Prices and Interest Rates Rising, How Much Could Mortgage Bills Grow?" realtor.com® (March 13, 2018)
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