Cost burden of mortgages getting lighter

Cost burden of mortgages getting lighter

Despite regular reports of rising home prices, new data released by the U.S. Census Bureau shows that the housing cost burden for many homeowners has been getting lighter of the last several years. The Bureau’s American Community Survey (ACS) found that the number of households with housing related expenses that account for more than 35 percent of monthly income is shrinking. In addition to monthly mortgage payments, household expenses include utilities, taxes, insurance and maintenance fees.
The ACS also shows that as 2018, of the 77.7 million homeowners in the U.S., about 62 percent carry a mortgage – a decline of 6.5 percent from a decade earlier. In 2018, 20.9 percent of mortgaged households were considered burdened, down from 28.8 percent in 2008.
Recent declines in mortgage rates, giving owners an opportunity to refinance into a lower monthly payment, has helped drive the shared of burdened homeowners lower.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.875 percent and 15-year rates are near 3.375 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.