HUD Articles
Housing Affordability Conditions Weaken in September 2022 as Mortgage Rates Escalate
September 08, 2022
At the national level, housing affordability fell in September compared to the previous month, according to NAR's Housing Affordability Index. Compared to the prior month, the monthly mortgage payment increased by 8.0% while the median family income increased by 0.6%, making home buying less affordable in September. The monthly mortgage payment increased by $142 from last month.
Compared to one year ago, affordability fell in September as the monthly mortgage payment climbed 57.8% and median family income rose by 3.9%. The effective 30-year fixed mortgage rate1 was 6.18% this September compared to 2.95% one year ago, and the median existing-home sales price rose 8.1% from one year ago. Mortgage rates this September were the highest since November 2008, when the rate was 6.18%. For comparison, the median home price was $266,700, and the monthly payment was $1,304, with the payment at a percentage of income at 21.8%.
In September, potential home buyers must make $3,083 more than the median family income ($88,693) to qualify for a home.
