Roughly 60 percent of U.S. households
are effectively priced out of the new home market
according to 2021 estimates
from the National Association of Home Builders (NAHB). Na Zhao, writing in a
pair of posts in NAHB’s Eye on Housing blog says 75.1 million households
are unable to qualify for a mortgage to purchase a median priced new home under
standard underwriting criteria and, if the median price of a home increases by
$1,000, another 154,000 households would join the priced-out list. Further, Na
Zhao used a 2.8 percent interest rate in the calculations, and the 30-year
fixed rate is now over 3.0 percent.

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