Trends in Monthly Mortgage Payments

Mortgage payments remain near record highs after skyrocketing during COVID

Source: Construction Coverage analysis of U.S. Census Bureau, U.S. Department of Housing and Urban Development, and Freddie Mac data | Image Credit: Construction Coverage

At the same time, the housing market has become significantly more unaffordable over the past four years. Increased demand for homes during the pandemic due to record-low mortgage rates, remote work, and stimulus payments, coupled with low inventory, caused home prices to skyrocket. The median home sales price was over $412,000 as of Q2 2024, up 30% from just four years ago. Due to actions by the Federal Reserve to combat inflation, mortgage interest rates also rose substantially during this period and remain elevated today. Lofty home valuations and higher interest rates have caused payments on new mortgages to climb. The estimated monthly payment for a median-priced home is $2,193 as of April 2024, nearly double the monthly payment from July 2020, and an amount difficult for many American construction workers to afford.