Home prices have risen by double-digits nearly every month of 2021, when compared to 2020. This is leading to an increase in affordability struggles for home buyers, particularly first-timers. The U.S. Department of Commerce reported last week that the median sales prices for new homes rose nearly 19 percent in November on a year-over-year basis.
The higher home prices have also led to an increase in how much buyers need to borrow to purchase a property. The Mortgage Bankers Association reported the average new mortgage climbed to $414,115 last month. Likewise, the size of down payments also climbed. ATTOM Data Solutions shows that median down payments on single-family homes purchased with financing in the Q3 2021 was $27,500 – up 41 percent from the same period last year.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 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.