US Home Affordability at Worst Level Since 1984
Home affordability is the worst it has been since 1984
CNN Business reported on Thursday (8-24-23) that buying a house in the US currently requires a significantly larger portion of a homebuyer’s income, making this the most unaffordable housing market since 1984, by one measure.
According to mortgage technology and data provider Black Knight, at today’s rates, buying a median-priced home would require a monthly principal and interest payment of $2,440 for those making a 20% down payment. That is $1,172 a month more in mortgage payments from just 2 years ago.
Based on those payments, 38.6% of the median household income is required to make the monthly payment on the average home purchase, the largest share since 1984, Black Knight said.
CNN notes that the lack of affordability is not expected to improve much in the near term. In just the last few weeks, US home prices rose for the first time in months, and the 30-year fixed mortgage rate hit a 22-year high of 7.23%.
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