Black knight: as interest rates hit 22-year highs, 51% of homebuyers face $2,000+ monthly mortgage payments; nearly a quarter face $3,000 payments or more

In july 2023, the average monthly principal and interest (p&i) payment for borrowers purchasing a home using a 30-year fixed-rate loan was $2,306 – before taxes and insurance are even included that's the highest average p&i payment on record and has risen by 60% (+$871) over the past two years; it's also poised to push even higher given recent rate increases more than half of such july purchase originations had a payment of more than $2,000 a month, up from just 18% 2 years ago, with nearly a quarter (23%) having payments of more than $3,000 – up from 5% in 2021 beyond purchase affordability, rising interest rates are also having a clear and decisive impact on how much equity mortgage holders are willing to withdraw from their homes, and by what means mortgage holders tapped $39b in equity in q2 2023 via cash-out refis as well as home equity loans and lines of credit, up modestly from the first quarter but just half the volume of q1 2022 ($79b) before rates began to rise from 2010-2021, mortgage holders withdrew an average 0.92% of available tappable equity each quarter; that share has fallen to just 0.4% over the past three quarters, resulting in a roughly 55% decline in equity withdrawals put simply, since rates began their climb roughly 15 months ago, nearly $200b in equity that might have otherwise been withdrawn and injected into the broader economy has remained untapped jacksonville, fla. , sept. 6, 2023 /prnewswire/ -- today, black knight, inc., now part of intercontinental exchange, inc. (nyse: ice), released its september 2023 mortgage monitor report, based on the company's industry-leading mortgage, real estate and public records data sets.
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