The average price of single-family homes and condominiums remains more unaffordable than in the past, according to a second-quarter analysis released Wednesday.
ATTOM, a company that manages land, real estate, and real estate data, Carefully selected housing information The survey, which covers 99 percent of U.S. counties, found that the pandemic-era trend of rising mortgage rates and skyrocketing home prices has not slowed.
The ATTOM survey also found that the cost of a median-priced home now makes up about 35.1% of the national median wage, the highest since 2007. Experts generally base their guideline on that figure at about 28%.
The national median home price hit a record high of $360,000 in the spring, and with mortgage rates hovering around 7%, the costs of homeownership are outpacing recent wage increases, the survey said.
“The latest home affordability data presents a clear challenge for homebuyers. Home prices are rising and mortgage rates remain relatively high, but these factors are making housing more affordable,” ATTOM CEO Rob Barber wrote in the company’s analysis. “We often see these trends intensify during the spring buying season, when buyer demand increases. However, this year’s trends have been especially challenging for prospective homebuyers, more so than at any point since the housing market boomed in 2012.”
The average rate on a 30-year mortgage was about 6.9% at the end of the quarter, more than double 2021 levels.
Real estate firm Redfin concluded earlier this year that it was more expensive than ever to buy a home in the U.S., with home prices averaging about $383,725 in the four weeks ending April 21.
Federal Reserve Chairman Jerome Powell said at an event in Portugal this week that the central bank needs to see improving inflation measures in the economy before cutting interest rates.
“We want to be confident that inflation is declining sustainably towards 2 percent before we begin the process of easing monetary tightening,” he said.
