These are the 10 cities where mortgage payments increased the most this year

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This is the impact of an unprecedented housing market.


Key Point

  • It’s been a tough year to be an aspiring homeowner.
  • These 10 cities (all in the South or Southwest) saw the greatest increase in entry-level mortgage payments between July 2021 and July 2022.
  • If you want to buy in the current situation, you can save your down payment, pay off your debt and get the best mortgage rate available.

It is no exaggeration to say that the housing market is in a difficult situation these days. home buyer It has battled bidding wars, low home inventories and currently rising mortgage rates. At the time of writing, the current average interest rate for a 30-year fixed rate mortgage is his 6.66%, up from an average interest rate of 2.65% in January 2021.And if the buyer manages climb the wealth ladderthey may have paid more than they wanted for the house – meaning some buyers were completely shut out.

Below are the current 10 entry-level cities. mortgage payment July 2021-July 2022 saw the greatest increase in combined house prices and mortgage rates, according to data from John Burns Real Estate Consulting. These cities are all located in the Southwest and South of the United States, both very popular regions that attract large numbers of Americans. North American Moving Services’ 2021 Migration Report found Arizona, Tennessee, and Carolina to be his top destinations for Americans moving in 2021. This is reflected in this list. So what was the average price of homes in these metropolitan areas, and what features attracted buyers? Let’s dive in.

1. Orlando, Florida

Average home price: $389,144 (+28.2% YoY)

Orlando, the first of four Florida cities on this list, has a special appeal for many Americans due to its mild climate and many family-friendly attractions. Disney World he opened in 1971, but that was just the beginning. The company now devotes his 40 square miles to his four theme parks and two water parks in the Orlando area.

2. Nashville, Tennessee

Average home price: $462,211 (up 27.9% year-on-year)

Nashville is the state capital and second largest city of Tennessee. Famous for being home to the country music scene, it’s also home to several NFL teams and established institutions of higher education.

3. Raleigh, North Carolina

Average home price: $457,510 (+25.2% YoY)

The first of two North Carolina cities on the list, Raleigh is located in the middle of the state. Residents can enjoy college sports and a wealth of jobs at high-tech companies. It is also south enough to provide mild winters.

4. Jacksonville, Florida

Average home price: $313,315 (+27.1% YoY)

Jacksonville is located on Florida’s North Atlantic coast, very close to Georgia. Residents often say it feels more like the Peach State than the Sunshine State, according to PODS, a moving company. Jacksonville offers residents easy beach access and hot summers.

5. Charlotte, North Carolina

Average home price: $402,643 (+23.5% YoY)

Very close to the South Carolina border, Charlotte is home to the NASCAR Hall of Fame and attracts racing fans from all over the world. The most populous city in the state and one of the busiest airports in the world, he is a major hub for American Airlines.

6. Las Vegas, Nevada

Average home price: $442,727 (+22.4% YoY)

Las Vegas is synonymous with bright lights, gambling and the tourism industry, calling itself the entertainment capital of the world. A dry desert climate, year-round sunshine, and no state income tax.

7. Miami, Florida

Average home price: $560,169 (+30.7% YoY)

Miami may be prone to hurricanes, but fun in the sun and beautiful beaches are powerful draws for those relocating to this South Atlantic city. Miami boasts cultural diversity, a vibrant nightlife, and plenty to see and do for residents and visitors alike.

8. Tampa, Florida

Average home price: $422,079 (up 28.2% year-over-year)

The last Florida city on this list, Tampa is located on the central Gulf Coast of the state. Tampa boasts several major league sports teams, a mild climate, and proximity to both the ocean and Tampa Bay.

9. Atlanta, Georgia

Average home price: $403,646 (up 15.5% year-over-year)

Atlanta is located in central Georgia, and unlike the southern cities on this list, Atlanta has four seasons (yes, winter comes without much snow). Major attractions include ample green space for golf and other recreation and several professional sports teams.

10. Phoenix, Arizona

Average home price: $427,586 (up 16.5% year-over-year)

If you like hot, dry weather and lots of sunshine, Phoenix might be for you. The 2020 US Census found that Phoenix’s population is growing faster than any other city.

want to buy a house?

While it remains a difficult time for aspiring homebuyers, rising mortgage rates are slowly cooling the market. Redfin points out that the buyer lost his 29% of purchasing power thanks to the spike. As reluctant as this is, there are a few steps you can take to be ready to buy a home when the right one shows up.

  • work on your acquisition credit score You can qualify for the best mortgage rates available when you apply.
  • repay the debt Put yourself in the best position to afford a home.
  • save down paymentideally at least 20% to avoid private mortgage insurance payments.
  • don’t give up hope. No one can predict the direction of the housing market, but interest rates may drop in 2023. can refinance when things cool down.

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