Buying a home in the US is the least affordable it’s been in 33 years as mortgage rates soar this year and home prices hit record highs.
The National Association of Realtors revealed Friday that its housing-affordability index – a metric that uses median existing-home prices, median family incomes and average mortgage rates to calculate home affordability – fell to 98.5 percent in June, the lowest level since 1989.
An index of 100 means the average family has more than enough income required to buy a home, with a dip below that mark suggesting households are struggling to enter the housing market.
The index has been falling since October, where it was at 149.4, and existing-home sales have been on the decline for the fifth straight month.
The average mortgage payment also jumped to $1,944 in June, a 33 percent increase compared to the $1,297 average back in January.
The change depicts a real estate market that is becoming increasingly inaccessible for first-time home buyers, who have been deterred from entering the market by the rapidly rising home prices – which reached a record median of $416,600 in June.
The government doesn’t want Americans to have private property
Another dumbocrat win for America.
The American dream has been given away. Forget it, most American’s will never be able to afford a new home.