Buying a home in the United States became more difficult in June, with affordability declining for the fifth consecutive month.
According to the National Association of Realtors, a household now needs an annual income of about $109,152 to qualify for a mortgage on a typical single-family home.
The estimate is based on a median home price of $446,400, an average 30-year fixed mortgage rate of 6.57 per cent and a 20 per cent down payment.
High property prices and elevated borrowing costs continue to keep homeownership out of reach for many Americans.
However, NAR chief economist Lawrence Yun said affordability had improved compared with the same period last year.
He explained that household incomes grew faster than home prices, while mortgage rates were slightly lower on an annual basis.
Despite the yearly improvement, the monthly trend shows that purchasing a home remains a major financial challenge for middle-class buyers.
