Southern California house payments soar record 40% in a year – Orange County Register


“Payment Pulse” deals with the reality of Southern California homebuying finances — it’s really about the monthly check to the lender, not the headline-grabbing median sales price.

Buzz: A record-breaking 40% surge in Southern California house payments has helped slow homebuying to the lowest sales count for any May since 2011 — minus pandemic-iced 2020.

Source: My trusty spreadsheet looked at the frustrating monetary mix of higher home prices (using the monthly median from DQNews) and rising mortgage rates (average 30-year fixed-rate deals from Freddie Mac). We track a hypothetical monthly house home-loan payment a buyer paying the median price — assuming a 20% downpayment, without property taxes, association dues or insurance.

Rate watch: The three-month average 30-year loan for May was 4.79% vs. 4.3% the previous month and 3.03% a year earlier. That rate pop crushed a borrower’s buying power. In one month it fell 5.6% and in a year it dropped 19%. It’s the second-largest 12-month drop since 1988.

The pain

May’s estimated mortgage payments for the region soared to an all-time high of $3,188 on the record-tying $760,000 median.

In one month, the payment jumped $178 — that’s an extra 5.9%. In a year, payments rose $918 or 40%. (Please note the median price, by itself, is up 13% over 12 months.)

And do not forget that this math assumes a $152,000 downpayment — that’s 20% — a financial burden that’s grown by $18,000 in a year.

Locally speaking

The spreadsheet found some painful math within each of the counties, too, with all of May’s estimated house payments setting news record highs  …

Los Angeles: It takes a $3,607 payment to get the $860,000 median home. In the month, that payment’s up $181 or 5.3% higher. In a year, it’s up $982 or 37% as the median rose 11% over 12 months. And that 20% down payment is $172,000 — up $17,000 in a year.



Read original article here

Denial of responsibility! Vigour Times is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.

Leave a comment
Enable Notifications    OK No thanks