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Here’s How Much Less House You Can Buy Thanks to the Mortgage Spike

Mortgage rates have surged to near 7% after being around 3% in 2021.

Mortgage rates have surged to near 7% after being around 3% in 2021.

Bloomberg

In 2021, a standard 30-year fixed mortgage in the US could be had for somewhere around 3%. Today that number is closer to 7%.

According to a note from David Doyle, Macquarie’s head of economics, what we’re seeing right now is “the most severe deterioration in affordability on record,” with the average monthly cost of a typical mortgage jumping by roughly $1,000 over the last year. That jump, per Doyle, represents 15% of median household income in the largest such increase since 1981.