Mortgage Payments Surge Under Biden as Rates Rise, Squeezing Homebuyers
• Average monthly mortgage payments have nearly doubled under Biden, jumping from $1,746 at the end of 2020 to $3,322 in Q3 2022 - a 90% increase
• The surge is largely due to the Federal Reserve aggressively raising interest rates to fight inflation, causing mortgage rates to rise above 7%
• Experts expect rates to decline in 2023-2024 but warn the market will remain challenging, especially for first-time buyers
• Alternatives like renting or moving to lower-cost areas are recommended for those struggling to buy right now
• A Bank of America executive cautions buyers against trying to time the market and instead focus on financial readiness