The Impact of High Mortgage Rates on Housing Affordability in 10 Cities

Mortgage rates in the US have soared to their highest levels in years, making it increasingly difficult for Americans to afford buying a home. Existing home sales have plummeted, and the cost of monthly mortgage payments has become too high for many potential buyers. In 10 cities across the country, potential homeowners' buying power has been cut in half over the past two years. Despite a 9% increase in median family incomes since 2021, it falls far short of covering the 81% rise in monthly principal and interest payments. The Federal Reserve's plans to raise interest rates have contributed to the increase in mortgage rates, but recent indications suggest that rates may have peaked and could start to decline.