U.S. housing affordability at lowest level since 2006

Mortgage payments rose to an average $1,842 in May from $1,297 in January

By Ben Whedon

Published: July 8, 2022 4:39pm

Updated: July 8, 2022 5:17pm

As the U.S. grapples with rising gas prices, American housing it witnessing a similar spike in pricing, barring many from becoming homeowners amid the nation's other economic woes.

The National Association of Realtors announced Friday that its housing-affordability index had fallen to 102.5 in May, marking the lowest figure for the index since July 2006 when it stood at 100.5, the Wall Street Journal reported. The plunge brought the index near the July 1990 low of 100.2 as well.

Mortgage payments rose to an average $1,842 in May from $1,297 in January, assuming a 30-year mortgage and 20% down payment, according to the Journal.

The outlet further noted that active listings declined 34% in June from the same time in 2020 and witnessed a 53% drop from June 2019.

U.S. housing price spikes come amid soaring inflation, which stood at 8.6% as of May of this year.