bee Calculated Risk On 3/05/2025 11:14:00 AM
Today, in the Real Estate Newsletter: Ice Mortgage Monitor: Property Insurance Costs Rose at a Record Rate in 2024
Letter 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 in 2023 caps off a 61% ($ 872) increase 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 Autbreaking Mortgages
• While all other subcomponents rose, the amount of principal paid on the average mortgage hero flat from 2023
• Over the past 5 years we've blessed 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.