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

by

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.

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.

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