Over the past several years, housing prices have skyrocketed leaving American families with larger mortgages than what has historically been seen. According to a recent report from the National Association of Realtors, the average U.S. family is spending approximately a quarter of its income on mortgage payments. During Q1 2024, the monthly mortgage payment on a single-family home with a 20% down payment was $2,037; that's $173 higher than last year’s average, which is an increase of about 9.3%.
Families typically spent 24.2% of their income on mortgage payments in the three months through March, down from 26.1% in the prior quarter but up 23.3% from a year ago. First-time buyers typically spent 36.5% of their family income on mortgage payments.
“We know that families are spending more to buy a home in today’s market compared with one year ago and broader historic norms,” says Realtor.com Chief Economist Danielle Hale. “As both home prices and mortgage rates have climbed, families have to choose between not buying, buying and downgrading their must-have list, or buying and putting more of their paycheck toward the purchase.”
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