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Today, in the Calculated Risk Real Estate Newsletter: Black Knight Mortgage Monitor for December: "Worst affordability levels since 2008"
A brief excerpt:
And on the payment to income ratio:
• It now takes 25.8% of the median household income to purchase the average home with 20% down and a 30-year mortgage, up from the 22.4% required at the end of Q3 2021
• Interest rate jumps in recent weeks have pushed us rapidly above the long-term, pre-Great Recession average payment-to-income ratio of 25%, resulting in the worst affordability levels since 2008
• While a 20.5% ratio has been the tipping point between market acceleration and deceleration over the past decade, severe inventory shortfalls are keeping home prices running hotter than they might otherwise
There is much more in the article. You can subscribe at https://calculatedrisk.substack.com/
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