MIDDLE-CLASS FAMILIES ARE BEING PRICED OUT of the housing market amid high mortgage rates and spiking valuations, making it increasingly difficult for them to build wealth. Some financial experts say it’s an environment that could lead to the end of the American middle-class dream of owning a home.
For most Americans, owning a property is key to their vision of success. It can help families create financial platforms for future generations to build on. But about 75 percent of homes currently on the market are out of reach for those in the middle class, according to the National Association of Realtors.
Interest on home loans is the highest it’s been since the early part of the century, hovering around 7 percent. Mortgage costs have soared as the Federal Reserve has aggressively hiked rates to battle inflation. Meanwhile, the supply of homes has dwindled due to a combination of underbuilding and sellers who are sitting out the market, unwilling to give up low rates they secured in years past, which in turn has pushed up prices.
This dynamic, analysts say, has made buying a home the most expensive it’s been this century. Down payments are higher, monthly mortgage payments are exorbitant and few affordable options
