We mentioned that marriage rates are down. Another iconic institution is in trouble: homeownership.
According to a report from the Harvard Joint Center for Housing Studiesreleased Wednesday, several factors are aligning to make this one of the worst environments to buy a home in decades.
A big factor is rising mortgage rates due to Biden’s reckless spending spree. Mortgage rates have risen from under 4% under Trump to 6.7% under Biden. These higher rates and the near all-time highs in home prices, mean higher monthly payments. The monthly mortgage payment on a median-priced home has risen to $2,800 a month, more than 50% higher than in 2018. Is Biden taking this into account when he claims inflation is down to 4%?
On top of that, mortgage rates have surged from around 3.3% in early 2022 to just under 7% today. Taken together with higher home prices, monthly housing payments for prospective homeowners have more than doubled since 2021. Income growth is also starting to slow, putting housing affordability near its most unfavorable levels since the early 1980s, according to data from the National Association of Realtors.
Perhaps less noticeable on the surface, the supply of homes for sale is also still historically low at a little above two months’ supply.