YOUNGSTOWN, Ohio (WKBN) – The National Association of Realtors is reporting that the average new home mortgage has increased by about $800.
According to NAR, the average monthly mortgage payment for a median single-family home with a 10% down payment has increased about $800 since January.
Interest rates have climbed about 2.5 percentage rates since the beginning of the year.
The housing market has remained unbalanced with supply and demand across the U.S. Demand is still outpacing supply, but higher interest rates for forcing would-be buyers to step back and homeowners to rethink pricing.
“The largest decline in contract activity was observed in the West region, where homes are the most expensive,” he said. “This further indicates the growing need to increase supply to tame home price growth and improve the chances of ownership for potential home buyers,” said NAR Chief Economist Lawrence Yun.
Regionally, pending home sales in the Midwest were down 1.7% percent in May and down 8.8% from one year ago. Other regions saw some ups and downs last month, but all saw decreases from the same time last year:
- Northeast – up 15.5% in May and down 11.9% from May 2021
- South – increased 0.2% in May and down 13.8% from May 2021
- West – down 5.0% in May and down 19.8% from May 2021
The average price of a home nationally hit a milestone in May topping out at $400K. Experts think that is the tip of the mountain. It’s a 14.8% increase from one year ago.