▲ A home for sale in Portland, Oregon
A key indicator measuring U.S. housing affordability has worsened for the first time in about three years.
According to announcements by the National Association of Home Builders (NAHB) and Wells Fargo on the 20th (local time), the share of monthly mortgage payments for a median-priced home valued at $410,700 accounted for 34% of a typical family's income in the second quarter.
This is up from 32% in the first quarter, putting the brakes on the trend of easing housing purchase burdens that had continued since 2023.
This shift is driven by a steep rise in U.S. mortgage rates as borrowing costs across the economy spiked amid the recent conflict between the U.S. and Iran.
Currently, the 30-year fixed mortgage rate rose sharply in the second quarter and is hovering at around 6.65%, the highest level in about a year.
In addition, the median price of new homes also rose 2% in the second quarter, adding to the burden on buyers.
NAHB Chairman Bill Owens said, "Buyers are facing high mortgage rates and economic uncertainty, while builders are struggling with rising construction costs, regulatory burdens, and labor shortages."
As new home sales have recently shown signs of stagnation, builders are expanding sales incentives such as price cuts and rate buydowns to ease the burden on buyers.
According to a recent survey conducted by Bloomberg Intelligence among investment professionals, 70% of respondents projected that single-family housing starts will decline this year.
(Photo: AP, Yonhap News)
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