Report: Higher prices, rates are unsustainable
Recent income growth has not been enough to keep up with rising mortgage rates and home prices, according to a new report by Black Knight, a real estate technology and data firm. Rising home prices and mortgage rates have increased the monthly payment of a median-priced home purchased with a 20-percent down payment on a 30-year mortgage by $150 per month. That marks about a 14-percent increase since the start of 2018.
While housing affordability stays better than long-term averages across most of the country, seven states are now less affordable than their long-term norms; 12 more states are approaching that point, according to the report. The report also cautions that housing affordability is likely to worsen across the country.