October’s pending data, however, points to a significantly sharper pullback for November closings.
Surging mortgage costs reshape buyer decisions
The monthly mortgage payment on the typical US home reached an estimated $2,004 in October, assuming a 20% down payment and excluding taxes and insurance. That’s up 12.8% from a year ago and 4.8% above September, the largest single-month jump in four years.
For Federal Housing Administration (FHA) borrowers putting 5% down, the year-over-year increase stood at 11.8%.
When taxes, insurance, and maintenance are added, a median-income household would spend 41.5% of its monthly income to carry the typical home, up from 39.2% a year earlier.
Mortgage rates averaged 7.33% in October, according to Freddie Mac, climbing from 6.86% in September.
