The U.S. mortgage industry has seen a significant rise in average monthly payments, likely due to increased interest rates. In April 2023, the average mortgage borrower paid $2,343 a month, which is a 28% increase year-over-year. This increases is likely tied to mid-6% mortgage rates that are still well above last year.
The rise in mortgage payments is likely putting pressure on many consumers and their budgets. The increase is not just isolated to mortgages either – analyses of consumer spending show a spike in monthly expenses in other areas as well. For example, consumer products and services, such as those provided by department stores, increased by over 6% in April 2023.
Although consumer spending and mortgage rates have risen, this trend is expected to continue in the coming months. Understanding the current conditions in the mortgage industry can equip borrowers with the information necessary to make smart financial decisions.
Key points:
• Mortgage payments in April 2023 average $2,343 per month, a 28% increase from one year prior
• Mid-6% mortgage rates contribute to the rise in payments
• Consumer spending on products and services increased by 6% in April 2023
• Financial conditions in the mortgage industry are expected to continue in upcoming months
You can read this full article at: https://www.housingwire.com/articles/mortgage-payments-rose-in-april-but-so-did-incomes/(subscription required)
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