Prospective home buyers leave a property for sale during an Open House in a neighborhood in Clarksburg, Maryland on September 3, 2023.It's no secret that the housing market looks far different than it did a few years ago.
For the past several months, this rate has hovered around the 7% level. While it has cooled after touching 8% late last year, it's still far higher the sub-3% rates consumers could lock in during the first years of the pandemic. With both mortgages and prices up, it's not surprising that affordability is down compared with the early innings of the pandemic.found affordability tumbled more than 33% between 2021 and 2023 alone.showed the economic feasibility of home ownership plummeted more than 36% when comparing April to the pandemic high seen in summer 2020.
The Atlanta Fed also breaks out what's driving the current lack of affordability. While significant pay increases in recent years have helped line wallets, the bank found that the negative impact of higher rates and list prices have more than outweighed the benefits of a bigger paycheck.found a very small proportion of borrowers are actually locked in at these lofty levels.