Except bargain mortgage rates aren’t likely in the near term.
Today’s housing affordability crisis goes beyond just high mortgage rates.
In 2023, housing affordability hit its lowest point in nearly40 years.
There is, however, some reason for optimism in the long term.
The central bank is likely to make more rate reductions over the next 18 months.
Mortgage rates are expected to fall, but it won’t be linear or quick.
Factors affecting housing affordability
An expensive mortgage market isn’t the only obstacle for homebuyers.
Rising home prices andlimited inventoryare also making homeownership out of reach andwidening the generational wealth gap.
That won’t offset today’s high home prices and limited supply of homes for sale.
More homebuying advice:
Methodology:All figures, unless otherwise stated, are from YouGov Plc.
The total sample size was 2,368 adults.
Fieldwork was undertaken August 19-21, 2024.
The survey was carried out online.
The figures have been weighted and are representative of all US adults (aged 18+).
