Housing affordability is on the decline the required monthly mortgage payment to purchase a median-priced existing-home has more than doubled from January 2020 to June 2023.
Mortgage

Housing Affordability Challenges Homeownership as Mortgage Interest Rates and Home Prices Rise

Housing affordability is on the decline. The required monthly mortgage payment (principal & interest) to purchase a median-priced existing-home has more than doubled from January 2020 to June 2023.
This is a consequence of a 330+ bps increase in mortgage interest rates and a 50%+ increase in the median price of an existing for-sale home over that period.

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Heatmap of S&P Case-Schiller U.S. National Home Price Index, Year-over-Year and Month-over-Month Price Monthly Appreciation
Residential Real Estate

S&P Case-Shiller U.S. National Home Price Index, Updated for March 2023

U.S. home prices rose for the second consecutive month in March, as home buyers returned to the market amid tight housing inventory, according to S&P CoreLogic Case-Shiller data. Yet, despite the modest recovery, home sales remain sluggish as homeowners are reluctant to relinquish lower rates. High borrowing costs also continue to pose challenges for potential buyers.

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Column chart showing total new-home sales by month from January 2018 to April 2023. Source: U.S. Census Bureau.
Residential Real Estate

New-Home Sales Unexpectedly Rise in April

New-home sales rise to their highest level since March 2022, while prices witness a significant drop. Find out what this means for housing trends and the economy in our latest blog post.

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