A new analysis from Construction Coverage shows that prospective Louisville-Jefferson County metro area residents are now paying 62.5% more in monthly mortgage payments than they were just three years ago. For a median-priced house, it comes to an extra $523 a month; this surge exceeds the national average rise of 59%.
Titled U.S. Cities Most Affected by High Interest Rates, the paper examines how home affordability across 369 metropolitan regions is impacted by changing mortgage rates and house prices. It found that while mortgage rates have nearly doubled nationwide—from 3.8% in February 2022 to 6.8% in February 2025—the accompanying surge in borrowing expenses has struck certain areas harder than others.
Over the previous three years, median house values in Louisville have surged from $225,464 to $259,566. Assuming a normal 30-year fixed mortgage with 20% down, that takes the monthly mortgage payment from $836 in 2022 to $1,359 today given the current interest rate.
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“Although high interest rates have moderated home prices to some extent, the adjustments have not proven sufficient to counterbalance the heightened borrowing costs associated with these elevated rates,” the report explains. “Compounding these challenges is the enduring scarcity of housing inventory, which persists across various cities, thereby sustaining relatively high price levels and perpetuating affordability concerns for aspiring homeowners.”
Louisville’s 62.5% increase in mortgage rates sets it above the national average and shows a larger trend across the Midwest and East Coast, where consistent housing price increases have endured even as borrowing costs have skyrocketed.
Nationally, the median home price grew from $317,185 to $357,138 over the three-year period. Combined with rising mortgage rates, the typical U.S. monthly mortgage payment surged by about $700, from $1,177 to $1,870.
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While some western areas like California and Arizona have seen price decreases or flat growth in recent years, much of the East Coast—including states like New Jersey, Connecticut, and Rhode Island—continues to suffer sharp mortgage payment increases, often surpassing 70%.
A few states, including Idaho and Louisiana, reported somewhat modest growth of 40% or less in meanwhile. The paper claims that this is partially due to the fact that such marketplaces previously showed fast price increase early in the epidemic, therefore reducing the space for additional escalation.
The analysis draws on data from Zillow’s Home Value Index and Freddie Mac’s Primary Mortgage Market Survey and rates cities based on the percentage change in monthly mortgage payments from February 2022 to February 2025.
To read the full report and extensive data for all U.S. metros and states, click Construction Coverage.
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This article appears in May 23 – Jun 5, 2025.