Mortgage rate continues to hinder housing affordability, says NAR’s Lawrence Yun

Housing Market Trends - The national median price for existing single-family homes reached a record high of nearly $430,000, up 1.7% year-over-year [1] - While homeowners are generally happy, the housing market is experiencing a slowdown in home prices and sluggish sales activity [3][6] - Mortgage rates remain elevated, impacting affordability and hindering people's ability to enter the market [3][5] - Some markets, particularly in the Midwest (e.g., Cleveland, Toledo, Rochester, New York), are seeing rising prices, while southern states like Texas and Florida are experiencing price declines [7] Affordability Challenges - The median age of a first-time home buyer has risen to 38 years old, indicating increasing affordability challenges [4] - Dramatic increases in mortgage rates, settling around 6.5%, are a primary factor hindering affordability [5] - Income growth (approximately 4%) is outpacing home price growth (less than 2%), which may improve affordability in the future [5] - Increased housing supply is needed to ensure manageable home price growth and prevent dramatic run-ups [5][6] Regional Opportunities - Declining prices in states like Texas and Florida, which have strong job growth, present a second chance opportunity for potential buyers [7] - Affordable markets in the Midwest are experiencing price increases [7]