The US housing market is at its most unaffordable level in 39 years. Monthly mortgage payments now consume nearly half of the median household income. Do you think the housing market is headed for a crash?

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by TonyLiberty

The US housing market is at its most unaffordable level in 39 years, with mortgage rates at record highs near 8%.

Monthly principal and interest payments on a median-priced home have surpassed $2,500 for the first time since tracking began in 1975.

Monthly mortgage payments now consume nearly half of the median household income — an increase of 94% in the last two years to 41% (up from 25% just two years ago)

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The last time affordability was this low was in the 1980s, when mortgage rates were in the double digits, and the average home cost about 3.5x the median income. Today, the ratio is nearly 6-to-1.

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Do you think the housing market is headed for a crash?


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