WRE News September 7, 2023
Buyer
The average monthly principal and interest (P&I) payment for borrowers purchasing a home using a 30-year fixed-rate loan in July was $2,306, according to new data from Black Knight Inc., now part of Intercontinental Exchange Inc. (NYSE: ICE). That sum, which occurs before taxes and insurance are included, is a record-breaking average payment for P&I and a 60% ($871) increase over the past two years.
Black Knight reported that more than half of July purchase originations had a payment of more than $2,000 a month, up from just 18% two years ago, with nearly one-quarter (23%) having payments of more than $3,000 – up from 5% in 2021.
“Just when did the $2,000 monthly mortgage payment become the norm?” said Black Knight Vice President of Enterprise Research Andy Walden. “Just two years ago, only 18% of homebuyers were facing that level of payment; as of the end of July that share had grown to 51%. Beyond that, nearly one in four July homebuyers has payments north of $3,000, up from just 5% in 2021. We’ve been talking about affordability for quite some time now, but this puts the situation in stark relief.”
Walden added these higher sums aren’t just a problem for buyers.
“While tappable equity levels have returned to near-record highs, rising rates are having a clear impact on how – and how much – equity mortgage holders are willing to withdraw from their homes,” he added. “All in – including first-lien cash-out refis and second-lien home equity loans and lines – we saw mortgage holders withdraw $39 billion in equity from their homes in Q2 2023. That’s up slightly from Q1’s $37 billion, but only about half the volume of Q1 2022, before interest rates began to climb.”
Walden added that home equity line of credit (HELOC) rates increased as the Federal Reserve enacted its regiment of rate hikes, with the average HELOC offering now above 8.5% for the first time in the 15-plus years Black Knight has been tracking the data. As a result, second-lien withdrawals were down by a little over 30% from the same time one year ago.
Stay up to date on the latest real estate trends.
Buyer
July 29, 2025
Depending on where you live, the housing market could feel red-hot or strangely quiet right now.
Buyer
July 29, 2025
If you’ve been watching the market, you’ve likely noticed a few changes already this year.
Buyer
July 27, 2025
The flow between the sink, stove, and refrigerator—what designers often call the kitchen triangle—was compromised by the original two-island plan.
Buyer
July 27, 2025
Home sales could fall to a new three-decade low in 2025 as elevated mortgage rates continue to crimp affordability, according to new projections from the Realtor.com® … Read more
Buyer
July 26, 2025
Mortgage application activity inched up for the week ending July 18, according to data from the Mortgage Bankers Association (MBA).
Buyer
July 26, 2025
Your living room is the place to hang out with family, your kitchen is where you go to nourish yourself and others, and your bedroom is where you escape to for rest.
We Guide Homeowners through the complicated process of selling their home using our 4 Phase Selling Process and 3 Prong Marketing Strategy that alleviates their stress and moves them effortlessly to their next destination. Schedule a 15 Minute Complimentary Strategy Session Today