Homeownership has become a pipe dream for more Americans, even those who could afford to buy just a few years ago.<\/p>\n
Many would-be buyers were already feeling stretched thin by home prices that shot quickly higher in the pandemic, but at least mortgage rates were low. Now that they are high, many people are just giving up.<\/p>\n
It is now less affordable\u00a0than any time in recent history<\/a>\u00a0to buy a home, and the math isn\u2019t changing any time soon. Home prices aren\u2019t expected to go back to prepandemic levels. The Federal Reserve, which started raising rates aggressively early last year to curb inflation, hasn\u2019t shown much interest in cutting them. Mortgage rates slipped\u00a0to about 7% last week<\/a>, the lowest in several months, but they are still more than double what they were two years ago.<\/p>\n Typically, high mortgage rates slow down home sales, and home prices should soften as a result. Not this time. Home sales\u00a0are certainly falling<\/a>, but prices are still rising\u2014there just aren\u2019t enough homes to go around. The national median existing-home price rose\u00a0to about $392,000<\/a>\u00a0in October, the highest ever for that month in data that goes back to 1999.<\/p>\n Read it all<\/a>.<\/p>\n "It is now less affordable than any time in recent history to buy a home, and the math isn\u2019t changing any time soon."@ginaheeb<\/a>: https:\/\/t.co\/8LZYrIAleG<\/a> pic.twitter.com\/LPIdKWGDAU<\/a><\/p>\n — Eric Wallerstein (@ericwallerstein) December 12, 2023<\/a><\/p><\/blockquote>\n \n