MORTGAGE PAYMENTS ARE UP SINCE THIS TIME LAST YEAR, BUT THAT’S NOT THE WHOLE STORY!
The above chart illustrates the average home price, income and mortgage payment for a homebuyer in 2021 vs for a home homebuyer in 2022. Comparing the payments of both loans, the difference of $298 is a 28% increase from last year. However, monthly incomes have increased by 6% since last year. Factoring in the increase in monthly payment and the increase in monthly income, the change in Payment to Income (P&I) ratio is only 3% more in 2022.
What does this mean to the average homebuyer? The payment has increased and affordability has gone down slightly, but the impact on the average homebuyer is much less than the media headlines would lead you to believe!
Would you like to buy a home in 2022? Tracey & Joe can help!