Mortgage payments skyrocket 31%, hit highest on record
BY: AZ Big Media
Monthly mortgage payments on the typical U.S. home rose 31% in the last year – the largest one-year climb in at least 22 years, as record-fast home value appreciation and rapidly rising mortgage interest rates delivered a one-two punch to would-be home buyers’ budgets.
In Metro Phoenix:
• Monthly mortgage payments have risen 43.1% ($466) over the last year and stand at $1,549 as of January
• Typical home values were $434,184 at the end of January, up 30.7% over the past year.
The average interest rate on a 30-year, fixed-rate mortgage rose from 2.74% to 3.45% between January 2021 and January 2022, according to Freddie Mac’s Primary Mortgage Market Survey. Over the same time, the typical U.S. home grew in value by 19.9%, according to the Zillow Home Value Index, thanks to strong home purchase demand running up against very low inventory of home listings.