Homebuyer conditions for US consumers have declined to an all-time low in June 2024.

• Homebuyer Conditions Index:
  • The homebuyer conditions index has declined to an all-time low in June 2024, reaching 27 points.
  • This index reflects consumer sentiment regarding homebuying conditions.
  • Only 14% of consumers currently believe it’s a good time to buy a home, down from 20% last month¹.
  • Affordability concerns are a major factor contributing to this decline.
• Comparison with the 1980s:
  • The current index level of 27 points is below the previous all-time low recorded in the 1980s.
  • During that period, 30-year mortgage rates were significantly higher, ranging between 12% and 19% on average.
  • In contrast, today’s mortgage rates are around 7%.
• Index Decline Since 2020:
  • Since 2020, the index has dropped by a substantial 80%, falling from approximately 140 points.
  • This decline indicates worsening perceptions of homebuying conditions.
• Median US Home Sale Price:
  • The median US home sale price has reached a new record of $393,627.
  • This high price contributes to affordability challenges for potential homebuyers.

BREAKING: Homebuyer conditions for US consumers have declined to an all-time low in June 2024.

The index of buying conditions is now at 27 points, below the previous all time low recorded in the 1980s.

This was when 30-year mortgage rates were between 12% and 19% on average… pic.twitter.com/ixiIWLj4l0

— The Kobeissi Letter (@KobeissiLetter) June 20, 2024