Compared to the prior month, the monthly mortgage payment increased by 7.3% while the median family income increased by 0.9%, making home buying less affordable in October.
According to Freddie Mac, the 30-year fixed mortgage rate fell to 6.31% from 6.33% the previous week.
Housing affordability rose about 8% in the last 4 weeks as mortgage rates moved closer to 6%. If inflation continues to slow down, mortgage rates may stabilize near 6% in 2023.
Even with the increasing number of layoffs in some industries, the overall job market remains strong.
The rate on a 30-year fixed mortgage fell to 6.49% from 6.58% the previous week. As a result, the monthly mortgage payment for a median-priced home dropped by $140 in the last three weeks.
October 2022's pending home sales pace weakened by 4.6% last month and fell 37.0% from a year ago.
October’s existing home sales reached a 4.43 million seasonally adjusted annual rate, declining 28.4% from October 2021.
Forty-six percent of the metro markets posted double-digit annual price appreciation in Q3 2022 compared to 80% in Q2, and national median prices rose 8.6% year-over-year to $398,500.
Housing affordability fell in September 2022 compared to August, with the monthly mortgage payment increasing by 8.0% and the median family income increasing by 0.6%.
The 30-year fixed mortgage rate fell to 6.61% from 7.08% the previous week. As a result, owning a home is 5% less expensive than it was a week ago.
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