The monthly mortgage payment based on a median existing home is now at a record $2,322/month.
This is double the $1,200 peak seen in 2008.
Keep in mind, $2,322/month does not include taxes, insurance or any other costs associated with buying a home.
If you add in taxes and insurance, the median is nearly $3,000/month.
That’s $36,000/yr or 51% of the median household PRE-TAX income.
On a post tax basis, the median new homebuyer is spending close to 70% of their income on monthly payments.
Buying a home is now a luxury.
The housing markets remains in an incredibly interesting spot.
We went from the lowest rates in history to 23+ year high rates in under 3 years.
Things will get even more interesting once the Fed cuts rates.
Follow us @KobeissiLetter for real time analysis as this develops.
— The Kobeissi Letter (@KobeissiLetter) August 23, 2023
The housing market is in a tough spot
Mortgage rates are now higher than even the peak seen during the Financial Crisis pic.twitter.com/Tg9MgmO8Be
— Game of Trades (@GameofTrades_) August 24, 2023
2/4
*US 30-YR FIXED MORTGAGE RATE JUMPS TO 7.31%, HIGHEST SINCE 2000 pic.twitter.com/AOIKL0WgmU
— Jim Bianco (@biancoresearch) August 23, 2023
4/4
As a result, very few existing homes are currently for sale. The onus is on homebuilders to provide new supply.
Of all single-family homes on the market, over 30% are now new construction. This is well above the historical average seen between the 1980s and 2010. pic.twitter.com/jSqYbNCY6l
— Jim Bianco (@biancoresearch) August 23, 2023