Tag Archives: affordability challenges

"It seems straightforward: We need to build more homes," said Dr. Skylar Olsen, Zillow's Chief Economist.

Just 21% of homes qualified as affordable to the average American as low inventory and rising interest rates are keeping people put.

A consistent decline in mortgage rates has attracted the attention of buyers and those seeking refis, as the MBA reports a rise in mortgage apps in excess of 7% week-over-week.

“Now that home prices have plateaued and even declined in some markets, buyers are faced with mortgage rates that have doubled, making home purchases even less affordable,” said Rick Sharga, EVP of Market Intelligence at ATTOM.

Zillow reports that monthly mortgage payments retreated in November, but numbers are still up more than 60% over the past year.

"Affordability is going to be the biggest factor in housing for 2023, but there's room for optimism on that front if mortgage rates recede," said Zillow Chief Economist Skylar Olsen.

Fixed-rate mortgages took a 0.40% dip this week on the heels of recent volatility of the 10-year Treasury yield.