1303 ET - To comfortably afford a typical U.S. home, valued at about $360,000, a home buyer making the median income needs to put down nearly $127,750, or 35.4%, Zillow reports. Five years ago, when mortgage rates were hovering just above 4% and the typical home was worth about 50% less, that home would have been affordable with no money down. The monthly mortgage payment for the household making the median income would now take up no more than 30% of that household's monthly income. The gap between the down payment needed now and five years ago underscores how the pandemic fueled a hot housing market, and why the rise in mortgage rates in the time since has cooled the market. (chris.wack@wsj.com)
(END) Dow Jones Newswires
June 20, 2024 13:03 ET (17:03 GMT)
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