Monthly Housing Costs Decline A Bit In 2020 Thanks To Record Low Mortgage Interest Rates
Scott P. Rogers
The monthly cost of a mortgage on a median priced house has actually declined a bit this year!
For this analysis, I am measuring "monthly housing cost" by determining the mortgage payment amount (principal, interest, taxes and insurance) for a median priced home in Harrisonburg and Rockingham County, if a buyer were financing 80% of the purchase price and paying Harrisonburg real estate taxes.
Over the past year...
- The median sales price has increased from $223,000 to $229,500.
- The average mortgage interest rate has declined from 3.94% to 3.43%.
So, even though prices are higher now than over the past two years, the monthly housing cost for financing 80% of the purchase of a median priced home has actually declined.
