The US housing market still had a lot going for it earlier this year. This in combination with consistently high prices was not enough to overcome the doubling in mortgage rates.
National Association of Realtors’ home power scale, based on mortgage rates, home prices and household income, showed that existing homes as of April were at their least affordable levels since July 2007. They are even less affordable now. On Tuesday, the NAR said the average price on an existing home increased to $407,600 in May from $395,500 in April, while Freddie Mac It was reported last week that the average rate on 30-year term mortgages stood at 5.78%, up from 5.23% a week earlier and up from April’s average of 4.98%.