Mortgage payments are claiming a bigger chunk of incomes for U.S. homebuyers, who also have to contend with quickly rising prices.
The monthly mortgage bill on a typical existing single-family home with a 20% down payment rose to $1,383 in the first quarter, up $319 from a year earlier, according to the National Association of Realtors. Families typically spent 18.7% of their income on loan payments, up from 14.2% in the first quarter of 2021.
Meanwhile, the median price of an existing single-family house surged 15.7% from a year earlier to $368,200, the Realtors group said in a report Tuesday. It was a faster pace than the 14.3% gain in the previous quarter.
The pandemic housing rally continues to fuel price growth as buyers battle over a critically tight supply of listings. Now, mortgage rates that have climbed at the fastest pace in decades are forcing more would-be homeowners to delay their searches. That may help cool the market by easing competition.
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