Monthly housing costs down 28% from 2007 peak

How much does it cost on a monthly basis to buy the median price home in our area, assuming 80% financing?  Today, that adds up to a $791 monthly payment.  That marks a dramatic 28% decline since 2007 when the monthly payment would have been $1,094.

The decline in median sales prices over the last few years (from $195K to $175K) combined with the decline in interest rates (from 6.2% to 3.9%) has brought average monthly housing payments down to very affordable levels.

Again, the graph above (click here for a more legible PDF) shows the mortgage payment including principal, interest, taxes and insurance (PITI) assuming 80% financing at November's average 30-year interest rate, and assuming Harrisonburg's real estate tax rate ($0.59 per $100).