The median home price in USA is $428,700. A home buyer should earn 45% more in income in 2023 compared to 2022 to afford buying a home because of doubling of the mortgage interest rates. A home buyer must earn $107,000 to afford $2682 in monthly mortgage. The average US wage increased by only 5% year over year.
26 million mortgage ready potential buyers had the capacity to afford a $400,000 mortgage at a 3% interest rate, the total falls by 3 to 4 million for every 1% increase in rates.