KBWY - Rising Interest Rates And Prices Making New Homes Less Affordable
2024-05-08 10:30:00 ET
Summary
- New homes in the U.S. became less affordable in March 2024.
- The mortgage payment on a new home sold in March 2024 would consume 43.4% of the monthly income earned by an American household at the exact middle of the income spectrum in the United States.
- The mortgage payment for a median new home sold has consistently exceeded the 28% basic affordability threshold since February 2021 and the higher 36% affordability threshold since March 2022.
New homes in the U.S. became less affordable in March 2024. The median price of a new home sold rose to $430,700 and the average interest rate on a 30-year fixed rate conventional mortgage increased to 6.82% during the month. These two things together made the monthly payment on a new home less affordable than what it had been just a month earlier, which was already outside the threshold of affordability for the typical American household....
Rising Interest Rates And Prices Making New Homes Less Affordable