Due to the rise in mortgage rates and property prices, as well as the slower-than-expected pace of income growth, housing affordability in the United States has reached its lowest point since 1989.
According to data from the Federal Reserve Bank of St. Louis, median home prices have now surpassed $400,000.
The qualifying income, often known as the income required to qualify for a mortgage, is defined by the National Association of Realtors as allowing a homeowner to put no more than 25% of family income toward the monthly payment for a 30-year fixed mortgage loan, including a 20% down payment.
According to the National Association of Realtors, median household wages increased by just 5.8% over the previous year and monthly mortgage payments increased by 53.7%.
