Mortgage Payments Are Getting Relatively Cheaper

The average mortgage payment is about $1,500 per month, according to the U.S. Census Bureau, coming in at about the same amount as the cost of renting (the average cost to rent was $1,476 in October).

Mortgage payments have decreased about 3% since mid-2018. They’re expected to get even lower this year, possibly 3.3% to 5.9% below this year, The Mortgage Reports notes.

The trend is occurring even as home prices rise. Mortgage rates, currently at around three-year lows, are helping more homeowners see a decrease in their monthly mortgage payments.

Census Bureau data shows that mortgage payments can vary quite a bit by location. For example, the Pacific region of the U.S., which faces some of the highest home prices, has an average mortgage payment of $2,096. On the other hand, the East South Central area has the lowest average for a mortgage, at $1,140.

This table from The Mortgage Reports shows the breakdown:

Pacific$2,096Washington, Oregon, California, Hawaii, AlaskaNew England$1,912Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode IslandMiddle Atlantic$1,856New York, Pennsylvania, New JerseyMountain$1,439Montana, Idaho, Wyoming, Nevada, Utah, Colorado, Arizona, New MexicoSouth Atlantic$1,437West Virginia, Maryland, Delaware, Washington D.C., Virginia, North Carolina, South Carolina, Georgia, FloridaWest South Central$1,397Oklahoma, Arkansas, Louisiana, TexasWest North Central$1,321North Dakota, South Dakota, Nebraska, Kansas, Minnesota, Iowa, MissouriEast North Central$1,296Wisconsin, Michigan, Illinois, Indiana, OhioEast South Central$1,140Kentucky, Tennessee, Mississippi, Alabama Source: The Average Mortgage Payment Is Declining. Here’s Why

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