San Antonio sees one of nation's biggest spikes in mortgage payments, says Zillow
Talk about sticker shock. Among the 50 biggest metro areas in the U.S., San Antonio saw the country's 16th biggest rise in mortgage payments from March 2021 to this March 2022, according to a new report from real estate platform Zillow.
The report shows a year-over-over change of 42.8 percent in the typical San Antonio-area mortgage payment. That figure is based on principal and interest for a 30-year, fixed-rate mortgage with a 20 percent down payment. That compares with a nationwide jump of 38 percent. Zillow pegged the San Antonio metro area’s typical monthly mortgage payment at $1,256.
“Home shoppers are facing a one-two affordability punch this spring: Quickly rising mortgage rates are compounding affordability challenges that have been brought on by record home value growth,” Zillow says.
Other major Texas metro areas experienced year-to-year spikes in the typical monthly mortgage payment:
- Austin saw the biggest rise, with a 63.5 percent year-over-year increase in the typical monthly mortgage payment ($2,299).
- Dallas-Fort Worth ranked 10th with a 48 percent year-over-year increase in the typical monthly mortgage payment ($1,445).
- Houston ranked 21st with a 38.8 percent year-over-year increase in the typical monthly mortgage payment ($1,144).
Among the 50 biggest metro areas, Washington, D.C., registered the lowest year-over-year increase in the typical monthly mortgage payment, 27.4 percent, the Zillow report shows.
“Higher mortgage rates were anticipated this year, but the speed of their rise has been breathtaking,” says Jeff Tucker, Zillow’s senior economist. “Record-low mortgage rates had been an affordability lifeline during the pandemic, keeping monthly payments in check even while prices climbed quickly.”
“March was the biggest test yet of whether enough buyers can meet the new asking prices to keep home values growing at a record pace, and the answer was ‘So far, yes,’” Tucker adds. “There will be a point when the cost of buying a home deters enough buyers to bring price growth back down to earth, but for now, there is plenty of fuel in the tank as home-shopping season kicks into gear.”