SAN DIEGO – The average monthly mortgage payment on a typical San Diego home is nearing $5,000, one of the most expensive rates in the country, a new Zillow market report shows.

The report, published Tuesday, found that mortgages in June are less affordable in the U.S. than at any point since 2007, due in large part to higher prices and interest rates. It has resulted in a slower housing market with greater inventory now available to potential buyers, but affordability continues to challenge the market as prices remain high and incomes lag.

Zillow economist Nicole Bachaud said in a statement that mortgage rates “took an unprecedented leap skyward over the past two weeks and quickly multiplied housing costs as they rose.”

“We are already seeing signs of waning demand, and expect these recent rate hikes to quicken the market’s needed rebalancing,” Bachaud said. “While shoppers will likely experience less competition for homes than the frenzied recent months, their purchasing power has dwindled.”

Using the Zillow Home Value Index, the typical home in San Diego recently was priced at $936,472, up more than 26% from a year ago and well above the same figure for the U.S. at $349,816, the report shows. Of the top markets in the country, the area’s monthly mortgage price of $4,857 is one of the highest, behind only San Jose ($8,664) San Francisco ($7,702) and Los Angeles ($4,870).

It’s a similar story for rent as the company’s Zillow Observed Rent Index — the area’s average of listed rents in the 40th to 60th percentile range for homes and apartments — was at $2,999. That marks a nearly 20% increase from last year.

In the U.S. in general, monthly rent prices are up almost 16% from 2021 to $1,979.

Economists with Zillow say rent prices have “soared” since the start of last year, largely in line with data from others compiling regular real estate reports. Even so, they remain the cheaper option compared to mortgage payments — including a 20% down payment, taxes and insurance — in 45 of the top 50 markets.

Mortgage rates this month were charted at 5.78%, pushing the average monthly mortgage payment in the U.S. to $2,127, a more than 50% increase from last year.

See the entire report from Zillow by clicking or tapping here.