Over the past year, home prices have increased six percent, and mortgage payments initiated over that period rose closer to 10 percent.
The CoreLogic Home Price Index forecast anticipates the median home sale price will rise about three percent from August 2017 to August 2018. Consequently, inflation-adjusted typical mortgage payment would rise 11.3 percent year-over-year from $816 to $908 over that period.
One way to measure the impact of inflation, mortgage rates, and home prices on affordability over time is to use something we call the “typical mortgage payment.” It’s a mortgage-rate-adjusted monthly payment based on each month’s U.S. median home sale price. It is calculated using Freddie Mac’s average rate on a 30-year fixed-rate mortgage with a 20 percent down payment. It does not include taxes or insurance.
PB Topical Ref
