Could where you live cost you more money? Howmuch.net listed the best, and worst states, to get a mortgage and found West Virginia to have the lowest monthly mortgage payment.
The report states that the average monthly mortgage payment in West Virginia is $362, with $52,783 of lifetime interest. West Virginia was followed by Oklahoma with an average mortgage payment of $463, Arkansas’ average mortgage payment of $474, Mississippi’s average $476 payments, and Alabama’s $493 average mortgage payment.
Hawaii was reported to have the highest average mortgage payment at $2,293. Homeowners in the District of Columbia pay an average of $2,104, California has an average mortgage payment of $2,043, Massachusetts follows with an average payment of $1,522, and Washington homeowners pay on average $1,450 per month.
The report found that demand and population density of an area can determine the average price of a home, which can cause monthly payments to rise. Homes in the mid-west cost less to purchase, and states impacted by the Great Recession still have higher home prices in comparison to those that weren't as heavily affected.
Supporting this report, the National Association of Realtors (NAR) released a study that revealed the average price for single-family homes in metros increased annually in 91% of market during Q2 2019. The average price of single-family home during the quarter was $276,600, which is an annual increase of 4.3%.
Metros that saw a decline in single-family pricing included San Jose-Sunnyvale-Santa Clara, California (-5.3%), San Francisco-Oakland-Hayward, California (-1.9%), and Honolulu, Hawaii (-1.2%). Boise City-Nampa, Idaho; Abilene, Texas; Columbia, Missouri; Burlington-South Burlington, Vermont; and Atlantic City-Hammonton, New Jersey, all saw double-digit decreases.
“New home construction is greatly needed, however home construction fell in the first half of the year,” Lawrence Yun, NAR Chief Economist, said. “This leads to continuing tight inventory conditions, especially at more affordable price points. Home prices are mildly reaccelerating as a result.”
The NAR states that 93 out of the 178 metros studied showed price growth of 5% of better.