Today, in the Real Estate Newsletter: ICE Mortgage Monitor: Property Insurance Costs Rose at a Record Rate in 2024
Brief excerpt:
Property Insurance Premiums Increased Sharply in 2024
Here is a chart from the Mortgage Monitor. These increases are largely being driven by losses due to natural disasters.
• The average annual property insurance premium among mortgaged single-family homes rose by a record $276 (+14%) to $2,290 in 2024
• That’s the largest single-year increase on record dating back to 2013 when ICE began tracking the metric, and when stacked on top of the $245 (14%) increase seen in 2023 caps off a 61% ($872) increase over the past 5 years
• Property insurance costs continue to be the fastest-growing subcomponent of monthly home payments compared with principal, interest, and property taxes
• The average total mortgage payment (PITI) rose 6% last year, with the 14% rise in property insurance costs significantly outpacing an 8% rise in interest payments and the 5% rise in property taxes among all outstanding mortgages
• While all other subcomponents rose, the amount of principal paid on the average mortgage held flat from 2023
• Over the past 5 years we’ve seen 21-22% increases in principal, interest, and tax payments among the active mortgage population, roughly a third the rise in property insurance
There is much more in the mortgage monitor.
There is much more in the newsletter.
