A $1,000 principal and interest payment supported a loan of $195,523 at the end of June, which is $17,834 more than this time last year.
In June 2006, it would have taken a monthly P&I payment of $3,225 to purchase a median priced home. With today's prices far below the 2006 peak combined with lower rates, it takes a payment of $2,225.
If buyers are sitting on the sidelines, it isn't because of rates; it's because of uncertainty. It may be concerns over their own financial circumstances or larger national and international issues, but folks tend to put off major decisions until they feel confident.
