US Homebuyers’ Required Income Falls 2% to $116,780 as Mortgage Rates Jump to 6.75%
Updated
Updated · Deseret News · May 27
US Homebuyers’ Required Income Falls 2% to $116,780 as Mortgage Rates Jump to 6.75%
5 articles · Updated · Deseret News · May 27
$116,780 was the income needed to afford a typical U.S. home in April, down 2% from a year earlier and marking a seventh straight month of improving affordability, Redfin said.
That easing came as the affordability threshold fell in 35 of the 50 largest metro areas, helped by more homes for sale, more sellers than buyers and greater room for price negotiation.
Affordability remains strained: the median-priced home still costs nearly $400,000, home prices rose 2.4% from a year earlier, and the typical U.S. household earns less than $88,000.
Mortgage rates are now threatening to reverse those gains after climbing to 6.75% last week, with Redfin citing Iran-war-driven oil uncertainty, possible Fed hikes and broader economic shocks.
As rising mortgage rates erase recent gains, is the dream of homeownership slipping away again for Americans?
With the Iran conflict threatening to raise rates, how will global tensions reshape your local housing market?
Home prices are hitting new highs, yet affordability is 'improving'. What does this paradox mean for the market's future?