Counties Where Mortgage Payments Increased the Most Over the Past Two Years | Nation and world

From small coastal towns in Maine to huge California subways, the national housing market has been roaring since the start of the pandemic. What started as a slight spike in buying after mortgage rates fell to record highs quickly turned into a home buying frenzy as the shift to remote working took hold. Homebuyers, suddenly free to work from any location, began to take over homes in almost every market, leaving housing shortages and huge increases in house prices in their wake.

We are now almost two years after the start of the global pandemic, but so far the frantic home buying trends we saw at the start of the public health crisis have persisted. Most markets are still experiencing severe housing shortages – and although there have been offers to build more homes, persistent supply chain problems have made it nearly impossible to meet increased demand.

That said, there are signs that some of the frenzied home buying has started to slow down. But while things may calm down a bit more over the next few months, the slower pace of the housing market may not translate into cheaper home prices. In fact, future buyers might be surprised, as home prices are expected to stay high until 2022. Buying a home will become even more expensive if forecasts of higher interest rates and mortgage rates due to inflation materialize.

If this happens, it will likely cause the average monthly cost of mortgage payments to rise sharply in some markets across the country. In fact, we’ve seen this trend happen in many markets before because of the housing issues we’ve been dealing with over the past couple of years. But where exactly is this happening and why?

Better, a homeownership platform with a free mortgage calculator, analyzed second quarter 2021 data from the National Association of REALTORS Housing Statistics and the American Community Survey from the 2019 US Census Bureau. This was done to determine where median monthly mortgage payments increased the most between 2019 and 2021.

To determine the 2019 median mortgage payments, Better took the median home value for each county from the 2019 American Community Survey 5-year estimates and calculated the monthly mortgage payment for a fixed-rate mortgage of 30 years with a decrease of 10% to 3.94. % interest rate. The monthly payments in this story do not include other property costs, such as property taxes, home insurance, or HOA fees.

To determine the 2021 median home value and mortgage payment data, the National Association of REALTORS applied the Federal Housing Finance Agency’s Home Price Index to the 2019 American Community median home values. Survey. He then calculated the monthly mortgage payment for a 30-year fixed rate mortgage with a 10% drop at an interest rate of 3%. The 2021 calculations also do not take into account any costs other than principal and interest.

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