Per Business Insider

The Mortgage Bankers Association have recently shared data that revealed how it was the worst time for new homebuyers. The data showed that Americans that want to buy a new home will be doing so in the most unaffordable market ever.

MBA associate VP for housing economics Edward Seiler, gave a statement to Insider regarding the situation. He noted that the prices have increased faster compared to incomes.

Seiler: "This hit a new record because not only have interest not retreated from the high 6s, but the typical application amount has jumped, all faster than incomes have grown,"

While the Federal Reserve began to raise interest rates last year, 30-year fixed mortgage loans reached over 7% from just around 3%. This represents a growth over doubling.

Seiler: "Current homeowners that were lucky enough to get a 2.75% interest rate in 2022 are in a great position, but for new home buyers looking to buy a first home, or those looking to move to another home, it's a very daunting proposition."

Seiler then compared the situation new home buyers were facing to the Great Recession. He noted that new home buyers actually had it worse as they faced a more unaffordable market.

In March, it was reported that the housing market reached an almost four-decade-high unaffordable level. In 2022, it was noted that first-time buyers needed to earn as much as $90,000.

In 2019, first-time buyers only needed to earn around $70,000 to purchase a new home.

In April, it was reported that housing affordability resulted in banks losing money. This comes due to high housing prices, resulting in the loss of money on every mortgage financed.

It was noted that, on average, every mortgage the banks originated in 2022 would cost them $301. Just a year before, the bank earned an average of just $2,339 per mortgage.

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