Two charts show how far homeownership is slipping out of reach as mortgage rates skyrocket
Rising mortgage rates and home prices have made homeownership increasingly unaffordable for the average American household. Data from the Atlanta Fed shows that the income required for homeownership is now significantly higher than the median income.
Why it matters
The widening gap between housing costs and median income highlights a growing economic crisis that threatens the traditional American dream of homeownership.
Housing experts say high mortgage rates are adding to housing affordability challenges. The Good Brigade/Getty Images Higher mortgage rates are making it tougher for people to move or achieve homeownership. The Atlanta Fed examines the income required for homeownership to cost no more than 30% of income. The analysis showed that's now well above the actual median household income. A few years ago, Americans were able to check off their goal of becoming homeowners thanks to historically low mortgage rates. It's harder to achieve that dream these days. The average 30-year fixed rate was at 7.4% for the week ending October 8, making it challenging for both newcomers and homeowners looking to move. Home prices, utilities, and other homeownership-related costs have increased. A CNBC/SurveyMonkey quarterly survey found that about a third of renters want to own a home but don't think that will ever be possible due to affordability.
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