"Even if mortgage rates dropped to 0%, an average home would remain unaffordable in some major metro areas due to high home prices being the bigger hurdle."
"Current homeowners hold onto low-rate mortgages, causing affordable inventory to remain tight as they are reluctant to sell."
Housing affordability in the U.S. is in crisis due to high mortgage rates and home prices. Home prices are over 50% higher than in 2020, while mortgage rates peaked at 8% in late 2023 and currently range between 6.5% to 7%. buyers are locked out of the market, and even a drop in mortgage rates would not solve the issue in major metro areas due to high prices. Tight inventory exists as current homeowners hold onto low-rate mortgages, limiting available homes for sale.
Read at Fortune
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