Mortgage Affordability Drops as Interest Rates Spike: When Will Homes be Affordable?
Expect home affordability to stay roughly the same most of 2023 as there are still mixed signals about the economy in general. Wages are up and unemployment is the lowest on record. Inflation isn’t under control yet and rents and home prices are starting to climb again.
Home will become more affordable as interest rates go below 5% which isn’t likely to happen until 2024. New home buyers are being pushed out of the market because of people paying cash for homes and people with large downpayments.