Monday Market Update: Where Mortgage Payments Have Grown Most & Least

Market variations are perhaps the only thing as certain as death & taxes, and a recent mortgage analysis from CNBC highlights mortgage payment differences across the US. It’s no secret that owning a home has become more costly; Redfin data reveals that the cost of financing a home has grown 22% in the last two years. 

From May 2022 to May 2024, median mortgage payments nationwide grew from $2,319 to $2,835. Sources report that homeownership costs have grown twice as fast as incomes. But if you look at individual cities, home prices and incomes vary widely – and the variation of the impact on different markets is as diverse as the economic trends within them. 

The biggest surprise of all just might be that there are NO Silicon Valley cities in the top 20 list of places where mortgage payments have grown the most in the last 24 months. The only California cities on the list are Anaheim at #3, Los Angeles at #15 and San Diego at #18, where average mortgage payments have rose 40%, 29% and 27% respectively. The highest jump in median payment occurred in providence Rhode Island – a surge of 45%, followed by Newark, New Jersey at 43%. 

There is one more surprise on the list; San Francisco actually made the list of places where mortgage payments have increased the least – at just 18%. Austin, San Antonia, Fort Worth and Phoenix demonstrated the least payment growth at 11%, 12% and 14% increases. 

There are virtually endless factors that account for the difference in payment increases across the US. Home price history, down payment amount, local new construction and associated inventory, remote work opportunities, and population declines are all factors that play into each location’s average house payment. The most important piece of information for you is what payment you can comfortably manage with the circumstances you are in.

While Silicon Valley may have the reputation for the country’s most expensive housing, our payment surges are not record-breaking like some areas. Staying or leaving should not be decided by what the numbers say, however, but by what your own financial situation supports. Where payments are increasing can be an indication of ‘easy’ equity, a sign of low down payments and/or high demand & competition (and multiple offers driving up prices). Should you decide to exit your current city – be sure to understand what driving forces are impacting home prices in your next community. 

Read the CNBC article in full HERE. 

Cheers to June,

Bobbi

Bobbi Decker
DRE#00607999

Broker Associate, Bobbi Decker & Associates
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