Housing market affordability right now is on par with what buyers saw at the height of the housing bubble in 2006 when factoring in mortgage rates, home prices, and income levels. That'll happen when mortgage rates spike from 3% to 7% just after the Pandemic Housing Boom sent national house prices up over 40%.
There are three levers that can help to ease housing affordability heading forward: Falling mortgage rates, falling home prices, or rising incomes. Due to financial market volatility, mortgage rates are always the lever that can have the biggest impact in the short-term.
