A buyer on a $3,000 monthly budget can afford a $419,000 home with a 7.7% mortgage rate.
Read more: t.co/PjUD0QHHd7
— unusual_whales (@unusual_whales) October 8, 2023
via unusualwhales:
A buyer on a $3,000 monthly budget can afford a $419,000 home with a 7.7% mortgage rate.
They lost $38,000 in purchasing power since last October. They could’ve bought a $457,000 home with a 6.6% rate. And they could have purchased a $595,000 home with 3.5% rates in 2022.
Housing affordability is the worst on record, per the National Association of Realtors.
It would take some combination of up to a 28% decline in home prices, a more than 4% reduction in 30-year mortgage rates, or up to a 60% growth in median household incomes to bring home affordability back to its 25-year average, per Black Knight.
Oh: pic.twitter.com/kjzw1sCGO2
— unusual_whales (@unusual_whales) October 8, 2023
This means that new homebuyers are now paying a record $34,000/year on home payments.
That's 50% of the median PRE-TAX income and 70%+ of the median POST-TAX income.
There is no way that this is sustainable.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) October 8, 2023