The average mortgage payment is about $1,500 per month, according to the U.S. Census Bureau, coming in at about the same amount as the cost of renting (the average cost to rent was $1,476 in October).
Mortgage payments have decreased about 3% since mid-2018. They’re expected to get even lower this year, possibly 3.3% to 5.9% below this year, The Mortgage Reports notes.
The trend is occurring even as home prices rise. Mortgage rates, currently at around three-year lows, are helping more homeowners see a decrease in their monthly mortgage payments.
Census Bureau data shows that mortgage payments can vary quite a bit by location. For example, the Pacific region of the U.S., which faces some of the highest home prices, has an average mortgage payment of $2,096. On the other hand, the East South Central area has the lowest average for a mortgage, at $1,140.
This table from The Mortgage Reports shows the breakdown:
|Pacific||$2,096||Washington, Oregon, California, Hawaii, Alaska|
|New England||$1,912||Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island|
|Middle Atlantic||$1,856||New York, Pennsylvania, New Jersey|
|Mountain||$1,439||Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, New Mexico|
|South Atlantic||$1,437||West Virginia, Maryland, Delaware, Washington D.C., Virginia, North Carolina, South Carolina, Georgia, Florida|
|West South Central||$1,397||Oklahoma, Arkansas, Louisiana, Texas|
|West North Central||$1,321||North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, Missouri|
|East North Central||$1,296||Wisconsin, Michigan, Illinois, Indiana, Ohio|
|East South Central||$1,140||Kentucky, Tennessee, Mississippi, Alabama|
Source: The Average Mortgage Payment Is Declining. Here’s WhyQuestions? Contact Corridor Lending Today!