Median incomes have grown since then. But median home prices have grown faster.
Mortgage rates and existing home prices are high, but the spillover effect on today’s economy has turned out to be more limited than one might think.
We aren’t headed for the double-digit mortgage rates of the 1980s, but don’t expect the 3% rates of the pandemic, either.
The average rate on a 30-year fixed just climbed above 7.1% for the first time in more than two years. That's making cheaper, adjustable-rate mortgages more attractive to some buyers.
The 30-year fixed mortgage rate hit a more than two-year high last week, sending mortgage applications down for the third consecutive week.
And it’s already too expensive for many Americans.
They’re cheaper in the short term, riskier in the long run.
Pending home sales and housing starts are down. Meanwhile, mortgage rates hover above 6.5%.
The number of people looking to buy a home hit a record low in July. For wealthier buyers, there are deals to be had in many parts of the country.
Immigration policy and supply chain uncertainty are factoring into construction firms’ hiring decisions.
