- 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