Homebuyer Affordability Slides for 5th Month as $109,152 Income Needed for Mortgage
Updated
Updated · CNBC · Jul 17
Homebuyer Affordability Slides for 5th Month as $109,152 Income Needed for Mortgage
3 articles · Updated · CNBC · Jul 17
Summary
$109,152 in annual income was needed in June to qualify for a mortgage on a median-priced $446,400 single-family home, as NAR said affordability worsened for a fifth straight month.
A 6.57% average 30-year fixed mortgage rate and the usual spring-to-summer rise in home prices drove the squeeze, with economists also tying higher rates to inflation fears after the Iran war began.
The June threshold was up from $93,552 in January, when the median home price was $398,200 and mortgage rates averaged 6.19%.
Compared with June 2025, affordability improved slightly because wage growth outpaced home-price gains and rates were lower than last year's 6.9%, when buyers needed $110,928 in income.
NAR expects some relief after the peak buying season, but a housing shortage of more than 4 million homes means supply-focused reforms may take time to help buyers.