Skyrocketing mortgage costs are a big problem for the U.S. Housing Market. Today it costs the typical buyer $2,724/month to buy a house, inclusive of mortgage, tax, and insurance. That's up 82% from pre-pandemic.
byu/Boo_Randy_Revival inHouseBuyers
“And an astounding 72% higher than the 2007 bubble peak.
We’ve never seen such poor housing affordability.
Incomes have not kept pace, with the typical buyer needing to spend nearly 40% of their income on payments.
This ultimately is not sustainable.
The only solution is lower prices.”
Borrowing costs briefly dipped below 6% in February, raising hopes of a housing recovery, National Association of Home Builders noted. Rates then rebounded toward 6.5%, where they have remained, and the brief affordability improvement faded before most buyers could act.
Many analysts viewed that improvement as the start of a broader recovery, but new Morgan Stanley research argues the dip was temporary.