Houston housing payments up 50% from last year

A new report shows that mortgage rates in cities across the nation have soared from just a year ago

Realtor.com's George Ratiu (LinkedIn, iStock)
Realtor.com's George Ratiu (LinkedIn, iStock)

Higher home prices and rising mortgage rates have greatly inflated monthly mortgage payments in Houston, by about 50 percent in just one year.

Nationally, mortgage payments today average approximately $1,882 a month, not including property taxes or homeowners insurance, according to a new Realtor.com report. A year ago, they were only $1,249, the Houston Agent Magazine reports.

“Even in markets with price declines, interest rates alone are driving payments so much higher,” said George Ratiu, manager of economic research at Realtor.com. “What stands out is even more affordable cities, such as Atlanta, Houston, and Chicago, are seeing significant increases in the lack of affordability.

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Soaring home prices and markedly diminished inventory are suppressing housing affordability for many nationwide who are simultaneously dealing with a third roadblock: sharp mortgage rate increases.

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The report also notes that higher monthly costs are affecting homeowners even in major metros where home prices have dropped, such as Los Angeles and Philadelphia. The report details mortgage payment increases in the nation’s 15 largest metropolitan areas Houston, which ranked 5th on the list, had a 47 percent increase.

Dallas had a 55 percent jump from last year, according to the publication. Other cities included Los Angeles at 27 percent, Philadelphia at 26, Chicago at 32, and in Miami, buyers’ mortgage payments were up 83 percent from where they were just a year ago.

“For first-time buyers, this part is challenging”, said Ratiu. “First-time buyers tend to face much bigger hurdles, from coming up with down payments to being able to qualify for mortgages all the while still competing with all-cash buyers, investors, and existing homeowners who have more cash to bring to the table.”

Realtor.com determined these findings by comparing the median home list prices between April 2021 and April 2022, according to Ratiu, as well as average mortgage rates from the first week of May 2021 to the first week of May this year.

[Houston Agent Magazine] — James Bell