Affordability is a big problem. Lower rates won’t solve it

Core Viewpoint - The proposal to cap credit card rates at 10% may not address the root causes of the affordability crisis, as rising prices of homes and other goods are more significant factors than interest rates [1][3]. Group 1: Credit Card Rates - A cap on credit card rates could reduce access to credit for individuals with lower credit scores, potentially harming those the proposal aims to help [2]. - The discussion around credit card rates is overshadowed by more pressing affordability issues related to rising prices [3]. Group 2: Housing Affordability - The median home price increased from $274,900 in Q4 2019 to $414,900 in Q4 2025, significantly impacting affordability more than the rise in mortgage rates, which increased from 3.90% to 6.16% [4][5]. - Monthly mortgage payments for a home priced at $414,900 would be $2,024 at the current rate of 6.16%, compared to $1,566 at 3.90%, illustrating the greater impact of higher home prices on affordability [5]. - To return monthly mortgage payments to 2019 levels, household incomes would need to rise by 56% or mortgage rates would need to drop to 2.65%, indicating that significant changes are unlikely in the near future [6].