Homebuyer Income Requirement Climbs to $109,152 by June 2023

The household income needed for a mortgage on a median-priced single-family home increased from $93,552 in January to $109,152 in June 2023, a rise of $15,600. Signed contracts for existing homes decreased by 5.4% in June, marking the largest drop this year. The median home price reached $446,400, while the average 30-year fixed mortgage rate fell slightly from 6.82% to 6.49% year-over-year. This declining affordability, coupled with low builder confidence, indicates challenges for homebuyers and could impact overall housing market activity.