As inflation ravages American bank accounts, monthly bills are becoming a strain on homeowners’ finances.
New data from fintech doxo shows that the average U.S. household spends 35% of their median income on essential household bills– roughly $2,046 per month, and $25,000 a year.
But the actual impact varies hugely by state. Doxo analyzed typical household bills such as auto loans, utilities, cable and internet, and alarms and security, along with a monthly mortgage payment or rent, to gauge a state’s affordability.
Hawaii, the most expensive state for household bills, sits at a markup of 50% above the national average. At the other end of the spectrum is West Virginia at -25.2% below that average.
“As consumers navigate their household…
Homebuyers saw affordability plunge in September as the typical monthly payment rose $102 from August. The national median payment applied for by applicants jumped to $1,941 from $1,839 in the month prior, the Mortgage Bankers Association reported. MBA’s Purchase Applications Payment Index fell for a second consecutive month, up 5.5% to a reading of 163.6. PAPI measures monthly payments across time and relative to income, so this reading indicates that payments on new mortgages accounted for a smaller share of a typical person’s income. The increase reverses four months of improvement from an index high of 164.2 in May. “With mortgage rates continuing to rise, the purchasing power of borrowers is shrinking. The median loan amount in September was $305,550…
The national median payment applied for by homebuyers rose 8.8% to $1,889 in April, according to the Mortgage Bankers Association’s (MBA) Purchase Applications Payment Index (PAPI). PAPI measures changes in monthly mortgage payments relative to income across time. An increase shows the payment to income ratio is up due to increasing application loan amounts or mortgage rates, or a decline in earnings. The national PAPI was up 7.8% to 162.7 in April. This shows affordability declining as payments increase, accounting for a larger share of a typical person’s income. The index is up 27% YOY. Borrowers in the 25th percentile of prices saw their mortgage payment rise 9.6% to $1,236. “Rapid home-price growth, low inventory, and an 80-basis-point surge in…
