The income required to afford a median home is still ~90% above levels seen in 2020. Rate cuts are not working yet.

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“For the first time since the 2020 pandemic buying a home has become more affordable:

US homebuyers now need to earn $115,454 annually to afford the median-priced home with a 15% down payment.

This is down 1.4% year-over-year, marking the first annual decrease since June 2020, when mortgage rates were below 3%.

The drop came after mortgage rates posted their first annual decline in 3 years.

However, the income required to afford a median home is still ~90% above levels seen in 2020.

Housing affordability has a long way to go.”



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