Posted 1/5/2024, 4:47:00 PM
Housing Market Squeezed as Mortgage Rates Reduce Affordability to 1985 Levels
- Mortgage rates are still near two-decade highs, causing a sharp drop in housing affordability to 1985 levels
- Homebuilder stocks soared 72.5% in 2023 amid tight supply and high demand
- Just 15.5% of homes were affordable for the average household in 2023, down from 20.7%
- New home sales down 27% and existing home sales down 40% since January 2022
- Rising delinquencies in multifamily market suggest mounting pressure on homeowners