Home Affordability Dwindles Despite Lower Prices and Mortgage Rates

US home prices have posted the biggest annual decline in over a decade, but the typical US homebuyer's monthly mortgage payment has soared to a new all-time high due to elevated borrowing costs. The lack of homes for sale and high prices, especially in popular pandemic Zoom towns, will likely keep many buyers on the sidelines. Higher mortgage rates are also freezing current homeowners, as they refuse to move and swap their loans for ones with higher monthly payments. The situation could worsen as the supply of homes available for sale remains lackluster.