We've been living with an insane housing market for years now that it's easy to forget how bad it is.
But it's not just bad — it's getting worse:
The average rate on the popular 30-year fixed mortgage rate hit 8% Wednesday morning, according to Mortgage News Daily.
That is the highest level since mid-2000.
Yet "mid-2000" doesn't even begin to capture it. We're going all the way back to the years of the Jimmy Carter Economy: The NAR Housing Affordability Index "clocked in at 91.7 in August, down from 93.9 in July." When it slips below 100 it indicates that "a household with a median income does not earn enough to be approved for a mortgage on a median-priced home."
The 91.7 was the lowest reading since the early 1980s.
Yes, the last time homes were this expensive, everybody dressed like this:
Not a great sign. For a discomforting visual, here's what you need to be making in 2023 to be able to afford a "median-priced home:"
And this isn't a gradual development, either. Total housing affordability is down by 50% since just a couple of years ago:
A CNBC report, meanwhile, finds that, given the recent spike in interest rates, "a buyer purchasing a $400,000 home with a 20% down payment would have a monthly payment today of nearly $1,000 more than it would have been two years ago."
Look at how insane the prices are out in California. This is a METH LAB.
Do you think this is going to change anytime soon?
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