Why it is getting even more durable to maintain a roof over your head

Why it's getting even harder to keep a roof over your head

Americans looking to buy or rent a home have had a rough year.

Rents are up by double-digit percentages in some cities. Meanwhile, buying a home is the most unaffordable it has been since the mid-1980s. Mortgage rates have surpassed 6% and home prices remain just off the record highs hit in recent months, pricing many prospective homebuyers out of the market.

And while there are some signs of cooling in the market, it doesn’t look like there will be much relief in sight for home buyers.

A year ago, a buyer who put 20% down on a median priced $363,800 single family home and financed the rest with a mortgage rate of 2.88% – the average at the time – had a monthly payment of $1,208.

Today, a homeowner buying the median priced home, which is now $396,300, with a mortgage at the current average of 6.29% would pay $1,960 a month in principal and interest. That’s $752 more every month.