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?

by
Sharing is Caring!

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)

See also  'Stocks are at the highs, vol is at the lows. I'm on the record short small caps. I'm not going anywhere. I think hedging makes sense here.'

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.

See also  Newsom announces contract to install nearly 500 car-tracking cameras in and around Oakland

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

Views: 74

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.