The median price of a home in the U.S. in 2020 was $329,000.
The median price of a home in the U.S. in 2022 is $428,700.
30-yer mortgage rates in 2020 were 3.1%.
30-year mortgage rates in 2022 are 5.6%.
Using a mortgage calculator and inputting 5% down…
That’s an increase of $1,000 a month for the same house bought today vs 2020.
I am curious if this is included in inflation numbers?
Math looks correct. Why do you think the housing market was on fire.
Remember, the average home has increased by ><$110,000.00 dollars in value for the home owner. Average Mortgage increased by 2.5%.
One year Mortgage rate in 1982 18.13% to 18.75%.
No. The government uses Owners Equivalent Rent, where they call home owners and ask them what they think they would have to pay to rent their own home. They do this instead of using what people are actually paying, so that they can fudge the inflation numbers down to keep from being forced to payout more in Social Security, which is tied to their inflation numbers.
What is more curious, some of the homes I inspected where owned by the original purchaser some 50 years, or even 60 years ago. They purchased at $20,000 to $30,000 thousand and earned a whopping $500,000.00+ in some cases.
My aunt, that never paid a dime of tax to renovate, purchased at $18,000 back in the 1950’s. When she and Ricky her husband passed on, her son, Ricky Junior sold to the bungalow to the tune of >$300,000,00. Good for him.
They lived through the Mortgage rate hikes in 1982 18.13% to 18.75% and still came ahead on top.
I wish I got involved in the real estate market. Almost purchased a condo in 2000 but Mother got ill. I had an approved mortgage for $125,000.00. Never came to fruition.
