By Jonathan Jones
The path to homeownership has been a tumultuous one for prospective buyers in recent years, characterized by a series of fluctuating trends and economic uncertainties. While buyers benefited from historically low interest rates early in the pandemic, they also faced record price increases due to constrained inventory and intense competition. Now, the landscape has shifted, but not in ways that have provided much relief.
Although high interest rates have moderated home prices to some extent, the adjustments have not proven sufficient to counterbalance the heightened borrowing costs associated with these elevated rates. Compounding these challenges is the enduring scarcity of housing inventory, which persists across various cities, thereby sustaining relatively high price levels and perpetuating affordability concerns for aspiring homeowners.
The result? The estimated monthly mortgage payment for a median-priced U.S. home is nearly 60% higher today than it was just three years ago.
- Average Mortgage Payment Now $694 Higher: Nationwide, average mortgage rates climbed 80% since 2022 (from 3.8% to 6.8%) while median home prices rose from about $317K to $357K. As a result, the mortgage payment for a median-priced home has grown from $1,177 to $1,870 in just 3 years.
Trends in U.S. Mortgage Rates & Payments
- Despite decreasing from the 2023 peak, mortgage rates and payments remain at near-record highs
It’s been more than two decades since homebuyers in the U.S. faced interest rates comparable to current levels. Despite a slight decline from its late 2023 peak of 7.6%, the average 30-year fixed mortgage rate today of approximately 6.6% to 6.8% remains at the highest level since 2002 and more than 2.5 times higher than the record lows of early 2021. While this uptick has led to a slight decrease in home prices, the reduction has not been significant enough to offset the increased borrowing costs associated with the higher rates.
For perspective, between February 2022 and February 2025 (the latest three-year period with available data), average mortgage rates climbed 80%, from 3.8% to 6.8%. At the same time, median home prices rose from $317,185 to $357,138. Taken together, this has resulted in the mortgage payment for a median-priced home growing by nearly $700 per month, from $1,177 to $1,870.
Cities Most Impacted by High Interest Rates
| Top Large Metros | Change* |
|---|---|
| 1. Rochester, NY | +83.6% |
| 2. Hartford-East Hartford-Middletown, CT | +83.4% |
| 3. Miami-Fort Lauderdale-Pompano Beach, FL | +74.2% |
| 4. Providence-Warwick, RI-MA | +73.9% |
| 5. Buffalo-Cheektowaga, NY | +71.9% |
| 6. Cleveland, OH | +71.8% |
| 7. Milwaukee-Waukesha, WI | +71.6% |
| 8. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD | +68.3% |
| 9. Richmond, VA | +67.6% |
| 10. Columbus, OH | +67.3% |
| 11. Boston-Cambridge-Newton, MA-NH | +66.5% |
| 12. Cincinnati, OH-KY-IN | +66.1% |
| 13. Virginia Beach-Norfolk-Newport News, VA-NC | +64.8% |
| 14. Grand Rapids-Kentwood, MI | +64.4% |
| 15. St. Louis, MO-IL | +64.4% |
| Bottom Large Metros | Change* |
|---|---|
| 1. Austin-Round Rock-Georgetown, TX | +24.0% |
| 2. San Francisco-Oakland-Berkeley, CA | +38.7% |
| 3. Sacramento-Roseville-Folsom, CA | +42.4% |
| 4. Phoenix-Mesa-Chandler, AZ | +42.9% |
| 5. San Antonio-New Braunfels, TX | +43.0% |
| 6. Portland-Vancouver-Hillsboro, OR-WA | +45.4% |
| 7. Denver-Aurora-Lakewood, CO | +45.6% |
| 8. Salt Lake City, UT | +47.7% |
| 9. Minneapolis-St. Paul-Bloomington, MN-WI | +49.7% |
| 10. Tucson, AZ | +51.1% |
| 11. Dallas-Fort Worth-Arlington, TX | +51.7% |
| 12. Birmingham-Hoover, AL | +52.0% |
| 13. Seattle-Tacoma-Bellevue, WA | +52.0% |
| 14. Houston-The Woodlands-Sugar Land, TX | +52.2% |
| 15. Memphis, TN-MS-AR | +53.4% |
| Top Midsize Metros | Change* |
|---|---|
| 1. Syracuse, NY | +88.1% |
| 2. Fayetteville, NC | +80.4% |
| 3. Atlantic City-Hammonton, NJ | +80.3% |
| 4. New Haven-Milford, CT | +80.2% |
| 5. Savannah, GA | +80.0% |
| 6. Knoxville, TN | +79.4% |
| 7. Trenton-Princeton, NJ | +79.3% |
| 8. Manchester-Nashua, NH | +78.8% |
| 9. Reading, PA | +77.6% |
| 10. Worcester, MA-CT | +75.1% |
| 11. Bridgeport-Stamford-Norwalk, CT | +73.5% |
| 12. Hickory-Lenoir-Morganton, NC | +73.4% |
| 13. Fort Wayne, IN | +73.4% |
| 14. Lexington-Fayette, KY | +72.5% |
| 15. McAllen-Edinburg-Mission, TX | +72.5% |
| Bottom Midsize Metros | Change* |
|---|---|
| 1. New Orleans-Metairie, LA | +25.4% |
| 2. Boise City, ID | +35.6% |
| 3. Beaumont-Port Arthur, TX | +37.0% |
| 4. Lafayette, LA | +38.2% |
| 5. Vallejo, CA | +41.6% |
| 6. Colorado Springs, CO | +43.0% |
| 7. Corpus Christi, TX | +43.9% |
| 8. Provo-Orem, UT | +44.5% |
| 9. Reno, NV | +44.6% |
| 10. Stockton, CA | +44.9% |
| 11. Greeley, CO | +45.2% |
| 12. Urban Honolulu, HI | +46.4% |
| 13. Santa Rosa-Petaluma, CA | +47.2% |
| 14. Spokane-Spokane Valley, WA | +47.8% |
| 15. Shreveport-Bossier City, LA | +48.4% |
| Top Small Metros | Change* |
|---|---|
| 1. Beckley, WV | +85.0% |
| 2. Rockford, IL | +83.1% |
| 3. Hinesville, GA | +82.1% |
| 4. Springfield, OH | +80.5% |
| 5. Sheboygan, WI | +79.9% |
| 6. Norwich-New London, CT | +79.4% |
| 7. Great Falls, MT | +77.4% |
| 8. Green Bay, WI | +77.4% |
| 9. Binghamton, NY | +77.1% |
| 10. Appleton, WI | +76.7% |
| 11. Vineland-Bridgeton, NJ | +76.7% |
| 12. Lewiston-Auburn, ME | +76.4% |
| 13. Kingsport-Bristol, TN-VA | +76.4% |
| 14. Muncie, IN | +76.4% |
| 15. Jacksonville, NC | +76.2% |
| Bottom Small Metros | Change* |
|---|---|
| 1. Johnstown, PA | +17.6% |
| 2. Lake Charles, LA | +25.7% |
| 3. Houma-Thibodaux, LA | +30.3% |
| 4. Hammond, LA | +34.1% |
| 5. Chico, CA | +36.1% |
| 6. Texarkana, TX-AR | +40.2% |
| 7. Grants Pass, OR | +40.9% |
| 8. Idaho Falls, ID | +41.3% |
| 9. Punta Gorda, FL | +41.4% |
| 10. Santa Cruz-Watsonville, CA | +42.5% |
| 11. Medford, OR | +43.1% |
| 12. Pueblo, CO | +43.3% |
| 13. Lake Havasu City-Kingman, AZ | +43.7% |
| 14. St. George, UT | +44.3% |
| 15. Redding, CA | +44.4% |
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