Summary
Home prices and mortgage rates in the U.S. have increased, making it harder for new homeowners to afford housing. Many Americans feel that buying a home may no longer be achievable or affordable, especially given rising costs and high mortgage rates.
Key Facts
- The median price of a typical U.S. home was $436,705 in March, up 1.2% from the previous year.
- The average 30-year fixed mortgage rate was 6.2% in March, above the 6% mark.
- A majority of Americans surveyed feel that housing costs are too high and have put their plans on hold.
- New homeowners in 2024 spend 26% of their income on housing, compared to 20% for existing homeowners.
- This 6-percentage-point difference is the largest gap in 34 years and is called the “new homeowner penalty.”
- Since 1980, the average down payment needed to buy a home has nearly doubled, while household incomes have grown by less than half that amount.
- Buyers need to save longer for down payments, especially as rent prices also remain high.
- Experts expected mortgage rates to fall and improve affordability in 2024, but rates have risen instead, reducing chances of improvement.
