Like most markets these days, the mortgage industry is facing considerable economic headwinds as high inflation and the threat of a recession make it difficult to pin down—let alone lower—mortgage rates. According to a recent Bankrate survey, the benchmark 30-year-fixed-rate mortgage averaged 5.38% last year and has been at or near 7% since Q2 2023.
Affordability, Foreclosure Impacting Some Borrowers
Prospective homeowners are standing on the edge of a growing affordability gap. It currently requires 33.2% of the national median household income to afford the median-priced home, well above the long-run average of 25%.
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