Home buyers in the U.S. are facing an increasingly challenging real-estate market once again, as the 30-year mortgage rate heads back over 7%.
To afford that on a monthly basis, a prospective buyer would need to make an annual salary of $108,440. Redfin considers a monthly payment as “affordable” if the buyer is spending no more than 30% of their income on housing. The NAHB’s median income figure is based on income estimates for metropolitan areas published by the Department of Housing and Urban Development. The Census Bureau, which measures income across the entire U.S., said that real median income in 2022 was $74,850.
Tips for house hunters as mortgage rates hover at 7% For the would-be home buyers who are in the throes of house hunting, hang in there. The market is expensive. It’s tough, so be prepared.