Want to move? Homeowners in these 6 U.S. cities could see their mortgage payments more than double
The housing market is locked up—and looking at one key number, it’s easy to see why. High mortgage rates are the main force freezing existing U.S. homeowners in place, with many would-be home sellers reluctant to part ways with much lower rates from a bygone era. But just how much more would they be paying in today’s real estate ecosystem? It turns out, the answer is a lot . Today, the average…
Mortgage rates are driving many U.S. homeowners to stay put, with some facing monthly payments more than double the cost of existing mortgage holders, according to a Realtor.com report. The average homeowner would pay $1,100 more per month for a median-priced home under today's rates. Higher home prices combined with high mortgage rates have created a significant barrier to homeownership for some, while keeping existing homeowners trapped in their current properties.
Realtor.com Chief Economist Danielle Hale highlighted the friction point for homeowners considering a move, stating that even a slight drop in mortgage rates would not be enough to alleviate the financial burden. In some cities, the situation is particularly dire, with homeowners facing monthly mortgage payments that have more than doubled.
Portland, Maine experienced the highest increase, with current mortgage holders paying $1,270 per month, while new homebuyers would need to pay an average of $3,392 per month. Other cities where homeowners would face a significant increase in monthly mortgage payments include San Jose, Los Angeles, Albany, Providence, Boise City, and Worcester.
Despite the high cost, some cities, such as Pittsburgh, show a smaller percentage increase in monthly mortgage payments compared to others. Realtor.com Senior Economist Hannah Jones warned that the home affordability crisis will persist, even if mortgage rates decrease, as slower home-price growth and rising incomes are also needed to address the issue.
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