REVEALED: How average mortgage payments on a new home have risen 90% since Biden took office – but experts warn buyers not to hold off in the hope of costs falling since high interest rates are here to stay

Home ownership is becoming a distant dream for most Americans, with average monthly mortgage payments now nearly double what they were when Biden took office.

Interest rates above 7 percent and rising home prices mean buyers are facing one of the least affordable markets in recent memory.

The analysis even shows that renting makes more sense financially than buying, with new leases costing $1,000 less per month on average than mortgages.

But despite the doom and gloom, experts are urging potential buyers to stop waiting to find their dream home and prepare for a “higher and longer” interest rate environment.

Average monthly payments for a new home rose to $3,322 in the third quarter of the year, according to the real estate investment firm. CBRE show. This means they have grown by 90 percent since then. in the last quarter of 2020—just before Biden took office in January 2021—when it was just $1,746.

Homeownership is becoming a distant dream for most Americans as average monthly mortgage payments are now nearly double what they were when Biden took office.

Higher interest rates and rising house prices mean buyers are facing one of the least affordable markets in recent memory.

The analysis is based on a $430,000 home with a 30-year mortgage and assuming a 10 percent down payment. It also doesn’t explain the slight drop in mortgages in recent weeks.

The rise in mortgages was fueled by the Federal Reserve’s aggressive campaign to raise interest rates from near zero in April 2020 to a 22-year high of 5.25 to 5.5 percent.

Higher interest rates are being used to curb running-hot inflation in the hope that they will curb consumer spending and bring prices back under control.

But cooling inflation, which currently hovers at an annual rate of 3.2 percent, has allowed the Fed to hold rates steady for two straight meetings since July.

As a result, mortgages also finally began to fall. The latest data from government-backed lender Freddie Mac shows the average rate on a 30-year fixed-rate mortgage fell to 7.03 percent, the lowest level since early August.

But today the head of Bank of America (BofA) warned homebuyers not to wait to see how low rates could get.

Matt Vernon, head of consumer lending at BofA, spoke about this. Business Insider: “Timing to enter the market is never good.

The rise in mortgage rates was fueled by the Federal Reserve’s aggressive campaign to raise interest rates from near zero in April 2020 to a 22-year high of 5.25 to 5.5 percent.

A recent report from real estate portal Realtor.com predicts that prices and mortgages will decline next year, albeit modestly.

“It’s really about being financially stable, emotionally ready, and ultimately finding that home that suits your dreams and/or your needs.”

Wells Fargo analysts also warned in October that buyers and sellers should prepare for an environment of “higher interest rates in exchange for longer.”

Likewise, a recent report from Realtor.com warned that there won’t be a “major breakout” in the housing market next year, but prices will decline slightly.

Economists at the real estate platform predict that the average rate on a 30-year mortgage will fall to 6.5 percent by the end of 2024.

Meanwhile, home prices will decline slightly by 1.7 percent, from $391,300 at the end of 2023 to $384,400 in 2024.

And the new year will even offer tenants some respite, with rents expected to fall by 0.2 percent, the report said.

Realtor.com chief economist Danielle Hale said, “We won’t see a major break from the jam the housing market has found itself in over the last year or so, but 2024 will be a small step in the right direction.” The situation will stop getting worse.”