Mortgage payments way up.

House payments, or mortgage payments as I like to call them reached a new high last week in the US. The median U.S. monthly housing payment set a record high at $2,894 during the four weeks ending May 5, up 14% from one year earlier, according to new data from Redfin (NASDAQ:RDFN).

At the same time, the first quarter of 2024 ended with 45.8% of mortgaged residential properties considered equity-rich, according to new data from ATTOM. This is down from 46.1% in the fourth quarter of 2023, marking the third straight quarterly decline, and it is also down from 47.2% in the first quarter of 2023, hitting the lowest point in two years. [WRENews]

Local data shows that home buyers are on average paying more than the asking price for the homes they buy which indicates that prices are still going up.

I read a lot of news each day. I try to sort through the crap and find the facts.

Despite the hype over homeownership, I can’t see an upside to paying high interest rates on a mortgage for an overpriced house.  In other news, the New York Times just launched a new “Rent Vs. Buy” calculator, and under some scenarios, people save $130,000 by renting rather than owning.

Sure there is a tax deduction for mortgage interest paid on a home loan but that is only for people who can itemize.

Don’t get me wrong. I am strongly in favor of homeownership but not at any cost. Please buy responsibly and consider more affordable options when available.

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