Rising mortgage rates, not home prices, drove the jump in monthly payments, squeezing household budgets despite wage growth.
Median monthly mortgage payments in the US climbed 40% to $2,134 over five years, driven by a doubling of the 30-year fixed rate to 6.47%. The increase outpaced modest home price growth, reshaping affordability for buyers.
In 2021, the median payment stood at $1,525 on a $396,800 home, compared to $2,134 today on a $417,700 median-priced home. Every $100,000 borrowed now costs $629 monthly, up from $416 in 2021, highlighting the impact of higher rates.
Households absorbed the cost despite hourly wages rising to $37.53, as the personal savings rate fell from 5% to 3.7%. The shift marks the steepest mortgage payment increase in modern history.