Qualifying income for a median-priced US home jumped $15,600 in five months to $109,152, pressuring buyers amid high rates and prices.
US households now need $109,152 in annual income to qualify for a mortgage on a median-priced single-family home, up $15,600 since January. The increase reflects a $48,200 rise in the median home price to $446,400 and a 38-basis-point climb in effective mortgage rates to 6.57% in June.
The National Association of Realtors’ Housing Affordability Index has fallen for five straight months, retreating from a nearly four-year high of 116.5 in January. In June, signed contracts for existing homes dropped 5.4%, the steepest monthly decline of the year, while homebuilder confidence sank to its lowest level since 2012.
New construction is gaining traction as resale affordability deteriorates, with builders competing for shrinking buyer demand in a market reshaped by elevated borrowing costs and prices.