New homebuyers are now paying a record $34,000/year on home payments.

by
Sharing is Caring!

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.

See also  Demand At Food Banks Has Soared To Record Levels All Over The United States

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.

See also  NHS trust compares cousin marriage to having children after 34.