After adjusting for inflation, the typical mortgage payment in June 2006 was $1,244 a month, 47 percent higher than what homeowners spent in June 2017. The difference is due to the drop in mortgage rates from 6.7 percent 11 years ago to 3.9 percent this summer.
CoreLogic reports that rising interest rates will decrease housing affordability more than home price increases.
Mortgage rates, inflation, income, and home prices are all expected to go up over the next year.
Based on these projections, the inflation-adjusted typical mortgage payment would rise from $848 this June to $983 by June 2018, a 15.9 percent year-over-year gain.
PB Topical Ref
