Housing in the US is simply unaffordable. Particularly since home prices and mortgage rates have soared under Biden.
.Owning a house is less affordable for average earners in the US than at anytime in 17 years.
The costs of a typical home — including mortgage payments, property insurance and taxes — consumed 35.1% of the average wage in the second quarter, the highest share since 2007 and up from 32.1% a year earlier, according to a new report from Attom.
Growth in expenses, along with mortgage rates hovering around 7%, have outpaced income gains as a persistent shortage of listings pushed the median home price to a record-high $360,000, Attom said. In more than a third of US markets, ownership costs ate up 43% of average local wages, far above the 28% considered to be a guideline for affordability.
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The latest data “presents a clear challenge for homebuyers,” Rob Barber, chief executive officer of Attom, said in a statement. “It’s common for these trends to intensify during the spring buying season when buyer demand increases. However, the trends this year are particularly challenging for house hunters.”
Pricey markets in the West and Northeast had the biggest declines in affordability, including Orange and Alameda counties in California, and Brooklyn and Nassau County in New York.
Among the 589 counties analyzed, 582, or 98.8%, were less affordable in the second quarter than their historic affordability averages, Attom said.
It appears that the US housing market is addicted to gov. Doctor, doctor (Yellen), we’ve got a bad case of unaffordable housing.
On the mortgage side, mortgage applications decreased 2.6 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Applications Survey for the week ending June 28, 2024.
The Market Composite Index, a measure of mortgage loan application volume, decreased 2.6 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index increased 8 percent compared with the previous week. The Refinance Index decreased 2 percent from the previous week and was 29 percent higher than the same week one year ago. The seasonally adjusted Purchase Index decreased 3 percent from one week earlier. The unadjusted Purchase Index increased 7 percent compared with the previous week and was 12 percent lower than the same week one year ago.
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