Nationally, the average mortgage payment has been falling, according to the United States Census Bureau. This has brought the average mortgage payment to around $1500 per month, which is only slightly higher than the average monthly rent payment ($1476 as of October 2019). These numbers mean that getting a mortgage, for the moment, is about as cost-effective as renting an apartment, making it more appealing for those looking to move from renting to homeownership.
Mortgage rates have fallen about 3% nationally since the middle of 2018, although the exact amount it has fallen has varied from region to region. For example, in the Middle Atlantic region, which includes New York, New Jersey and Pennsylvania, the average mortgage payment is $1856 per month, while in the East South Central region, which includes Kentucky, Tennessee, Mississippi, and Alabama, the average payment is $1140 per month. Compare that to the Pacific region, which includes Washington, Oregon, California, Hawaii, and Alaska, where the average mortgage payment is almost $2100 per month, the highest in the United States.
The talk about the “average” mortgage payment dropping can be somewhat deceptive, however. There are not just variations between regions, but also between states and even from county to county or town to town. Additionally, mortgage payments can depend on a number of personal factors, such as a borrower’s credit score, the size of the down payment they put on their house, and of course, the price of the house itself. However, that doesn’t take away from the overall downward trend.
The drop in mortgage prices is happening despite home prices increasing overall. There are a number of reasons for this, but the primary cause is historically low interest rates, which makes borrowing money relatively “cheap.” This means that anyone who wants to buy a home should do so sooner rather than later, just in case mortgage rates start to climb back up.
In this kind of market, it’s important to have an agent to help you find a house that meets your needs. Charles Rutenberg Realty is one of New York’s largest Real Estate companies with multiple offices providing a full suite of real estate services, including residential and commercial sales or leasing. We serve clients in Nassau, Suffolk, Queens, Kings, Bronx, Westchester, Putnam, and Orange Counties, and bring our knowledge and experience to bear in every transaction. If you are interested in buying, selling, or leasing real estate, give us a call at 516-575-7500 or visit our contact page.
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