{"id":2925,"date":"2022-09-27T09:57:05","date_gmt":"2022-09-27T16:57:05","guid":{"rendered":"https:\/\/jeremywhittaker.com\/?p=2925"},"modified":"2022-09-27T09:57:09","modified_gmt":"2022-09-27T16:57:09","slug":"house-prices-may-have-peaked-in-may-but-mortgage-payments-are-still-at-all-time-highs","status":"publish","type":"post","link":"https:\/\/new.jeremywhittaker.com\/index.php\/2022\/09\/27\/house-prices-may-have-peaked-in-may-but-mortgage-payments-are-still-at-all-time-highs\/","title":{"rendered":"House prices may have peaked in May but mortgage payments are still at all time highs"},"content":{"rendered":"\n

The real estate market continues to get wrecked by the FED rate increases. From a valuation perspective. But most people I would argue don’t care about the price of a house as much as they do about the monthly payment. This is a combination of price and interest rate. So I wanted to create a dataset that shows the average house price with the median sales price. This will tell you what the average person’s monthly mortgage payment is. <\/p>\n\n\n\n

So here goes. The current average 30-year mortgage rate is 6.29%<\/a> as of September 22, 2022.<\/p>\n\n\n\n

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We can take that and use Google Sheet’s formula to determine the monthly payment. It looks like this.<\/p>\n\n\n\n

=-PMT(INT RATE\/12,30*12,SALES PRICE)<\/em> <\/p>\n\n\n\n

I’m assuming zero down payment simply to hold this variable constant. What you can see here is the monthly payment currently is $2,728. This actually tops June’s monthly payment of $2,714<\/strong>. This means monthly mortgage payments adjusted for increased interest rates have not actually fallen at all. They are at their highest level ever.<\/p>\n\n\n\n

This data is for Arizona specifically.<\/em><\/p>\n\n\n\n