Home Affordability Drops for Fifth Month in a Row
Rising home prices and mortgage rates are squeezing buyers again. Affordability has now slipped five consecutive months.
If you're hunting for a home right now, the math keeps getting uglier. A widely watched housing affordability index just confirmed what buyers already feel in their gut — affording a home has gotten harder for the fifth straight month running.
The culprit is a one-two punch: home prices are climbing and mortgage rates have pushed higher since earlier this year. Neither trend is giving buyers a break, and the combined pressure is eating directly into purchasing power. Every tick up in rates shrinks how much house your dollar buys.
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Five consecutive months of declining affordability isn't a blip — it's a trend. That kind of sustained squeeze historically signals that buyer demand could start cracking, either forcing sellers to cut prices or pushing more would-be buyers back to renting. Watch the inventory data closely over the next few weeks for clues on which way this breaks.
For anyone sitting on the sidelines waiting for a perfect entry point, this report is a gut check. Rates and prices moving up together is the worst-case combo. If you're rate-locked or have seller concessions lined up, you're ahead of the crowd. If you're not, your window to act affordably keeps narrowing.
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