The average homebuyer in July is shouldering the highest mortgage payment on record — as affordability reaches its worst point in nearly four decades.
That average payment took up 36.5% of the median household income in July, up from 24.3% in 2021 and marking the highest share on Black Knight's record. Terri Straka stands on the porch of her new home while she finalizes details with a real estate agent in Myrtle Beach, South Carolina. The average payment of $2,306 also doesn't include taxes and insurance, which would tack on an additional $550 a month on average, Black Knight found, though that figure would vary depending on location.Circumstances only worsened as rates surged higher in August, topping 7% for three straight weeks during the month.