Low rates lead to more affordable mortgages

Low rates lead to more affordable mortgages

Low rates lead to more affordable mortgages
The amount of money Americans fork over each month for their mortgage is getting smaller according to a new report. As mortgage rates in the U.S. continue to hover near all-time lows, home buyers and those refinancing are finding that their mortgage payments are more affordable.

Low mortgage rates are also helping to offset some of the increased borrowing needed as home prices continue to rise at a rapid pace. Currently, Zillow reports that American workers are shelling out 17.5 percent of their total monthly earnings on their mortgage payments, down from 19.6 percent in 2018 when borrowing costs were much higher.

Today, those looking to purchase a new home or refinance their existing mortgage will find conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 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.