A new Redfin report shows that typical monthly payments for homebuyers in swing states have nearly doubled since the 2020 election. Redfin head of economic research Chen Zhao joins Wealth! to break down the report and why housing has become unaffordable for many Americans.
Zhao explains that the home loan payment associated with a median-priced home in a swing state has risen 92% since 2020. “The reason for that is because home prices have gone up more than 40% and home loan rates have more than doubled in that time. So that’s really driving the increase,” she says. She adds that American families making the median household earnings would have to spend 33% of their earnings to buy a median-priced home, marking a 22% rise since 2020.
As the housing supply gets squeezed, buying a home has become much more expensive. While prices have risen in the past, Zhao explains that his increase is different:
“Home prices actually also went up a lot between 2016 and 2020. They also went up about 40%, as they did between 2020 and 2024. But the difference is that home loan rates did not go up between 2016 and 2020, but between 2020 and 2024, we went from ultra-low home loan rates to now high 6 to 7% home loan rates. And that’s really driving the difference between those two time periods.”
#youtube #REALESTATE #news
About Yahoo financial:
Yahoo financial provides free stock ticker data, up-to-date news, collection of investments management resources, comprehensive sector data, advanced tools, and more information to help you manage your financial life.
– Get the latest news and data at financial.yahoo.com
– Download the Yahoo financial app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)
– Follow Yahoo financial on social:
X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/enterprise/yahoo-financial
Disclaimer:
If you own the YouTube channel related to this video and do not want it to be featured here, you can contact us through our contact page. We will gladly remove it without questioning your reasons.