Akron and Toledo Lead Mortgage Broker Payment Increases
A new mortgage broker report from LendingTree found that Akron and Toledo posted the largest year-over-year increases in average mortgage payments among the 100 largest U.S. metros. Akron’s average payment rose 10.7%, while Toledo’s climbed 9.7% over the past year.
Matt Schulz, LendingTree’s chief consumer finance analyst, pointed to shrinking inventory and higher mortgage rates as the pressure points. He said the strain is especially sharp in places where wages are not keeping pace with inflation.
Akron And Toledo Lead
The report said 26 of the 100 largest U.S. metros saw mortgage payments increase. Akron and Toledo topped that list, with Augusta, Georgia, next at 8.9% and Charleston, South Carolina, at 6.7%.
Schulz said the result stands out because the Midwest has long been associated with affordable housing. He said, “It is interesting to see, when you look at the list of places with the biggest increases, and it’s places like Akron and Toledo, Ohio. Those are very different parts of this country than San Jose and New York. In places where incomes aren’t necessarily rising through the roof, anytime you see these sorts of increases, it makes things challenging.”
LendingTree Report Figures
The figures come as Freddie Mac reported mortgage rates at 6.3% this week. After yesterday’s Federal Reserve meeting, some sources reported rates as high as 6.5%.
Schulz also said, “There are still plenty of places where costs are rising.” He added that affordability is especially challenging where wages are not keeping up with inflation, and that the Midwest has largely been home to affordable housing.
Powell And Inflation
Federal Reserve chair Jerome Powell said inflation has moved up and is elevated in part because of recent increases in global energy prices. He also said developments in the Middle East are contributing to a high level of uncertainty about the economic outlook.
Powell said total PCE prices rose 3.5% over the twelve months ending in March. That leaves buyers in places like Akron and Toledo facing higher payments at a time when borrowing costs remain elevated and local pay growth is not keeping up fast enough.
