Skip to main content

Average Monthly Payment to Buy Median-Priced Home Increases

Phil Hall
Jun 04, 2018
The monthly payment on a median-priced home purchased with a 20 percent downpayment increased by $150 per month

The monthly payment on a median-priced home purchased with a 20 percent downpayment increased by $150 per month, according to new data from Black Knight Inc.
Among the markets with the highest averages of median income needed to purchase a median-priced home are the District of Columbia (40 percent), California (38 percent), Hawaii (35 percent) and Maine (33 percent). In total, 14 states have payment-to-income ratios above the national average of 23 percent.
“While the pace of annual home price growth slowed a bit in March, home price appreciation (HPA) is still around 6.5 percent,” said Ben Graboske, Executive Vice President of Black Knight’s Data & Analytics Division. “We’ve also seen interest rates climb by nearly three-quarters of a percent so far this year. Together, those two factors have resulted in a $150 increase in the monthly payment on a 30-year mortgage used to purchase the median-priced U.S. home, about a 14 percent rise since the start of 2018. Stronger-than-average income growth in recent years still hasn’t been enough to keep up with rising HPA and interest rates.”
Graboske added that “seven states are now less affordable than their long-term norms and another 12 are close to hitting that point. Though much of the country remains more affordable than long-term norms, the current trajectory would change that sooner rather than later.”

Jun 04, 2018
Williston Financial Group, Doma Strike Deal

WFG is set to acquire Doma’s title operations, including operation centers in the Northern and Central California.

May 24, 2023
Mat Ishbia Takes A Charge At NBA Playoff Game

UWM CEO and majority owner of the Phoenix Suns involved in scuffle with Denver center Nikola Jokic

May 08, 2023
The Pitfalls Of Cash-Out Refinancing In A Rising Interest Rate Environment

Second-lien home equity loans are a far better way to take out cash

May 02, 2023
NEW YORK: How To Conquer - Not Fear - The Empire State

Roadblocks are many but payoff is worth it

May 01, 2023
RCN Capital Opens LA Office

Expansion marks lender's continued success.

Apr 26, 2023
Trigger Lead Legislation Renews Debate Over Consumer Choice

Borrowers can protect themselves from unsolicited lenders, but they could be doing themselves a disfavor

Apr 20, 2023