Mortgage Payments Reach Record Highs, Average Hits $2,807

The housing market in the U.S. is facing significant challenges, with median monthly mortgage payments hitting an all-time high of $2,807 as of March 2025, a 5.3% increase from the previous year. This increase is driven by rising home sale prices, which have gone up 3% year-over-year, and elevated mortgage rates averaging 6.67%, more than double the lows seen during the pandemic. Although pending home sales have declined by 4.6% year-over-year due to these high costs, new listings are up 7.5%, signaling potential relief for buyers. As spring approaches, some buyers are starting to tour homes and apply for mortgages, with applications at their highest level since February. Meanwhile, rental prices are also increasing, with one-bedroom units averaging $1,524, a rise of 2.5% from last year, as demand is expected to pick up in the warmer months. Experts warn that unless a recession occurs, rental prices could surge further as housing costs continue to climb.