Mortgage payments fell in May while income rose

A year ago, the average buyer would have paid $1,938 a month on a $347,093 mortgage at an interest rate of 5.13%.

The average income for a borrower in May 2022 was $7,617 a month, according to Candor. In May 2023, the average borrower’s income had shot up to $8,888 a month. Still, the average monthly payment to income was 26.2% in May 2023, up from 25.5% a year ago.

“Our monthly results show some relief for homebuyers, with a slight dip in interest rates and average monthly cost,”said Sara Knochel, CEO of data and analytics at Candor. “We expect this trend to continue throughout the year; prices to fluctuate gently in either direction as mortgage rates remain stubbornly high. Homebuyers who purchase in this market should anticipate a decent refinancing environment as soon as early next year.”

Check out the last 12 months below:

With mortgage rates still in the upper-mid 6% range, borrowers who received mortgages in May 2023 paid an average of $2,331 a month, up 20% from the year prior.

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