Homebuyer affordability declined in June for the fifth straight month, continuing a downward trend that began in January, according to data from the National Association of Realtors’ housing affordability index. The median single-family home price reached $446,400 while the average 30-year mortgage rate stood at 6.57%, requiring an annual income of $109,152 to qualify for a mortgage with a 20% down payment.
Comparing conditions over the broader timeline, the income requirement has risen substantially since January, when the median home price was $398,200, rates averaged 6.19%, and qualifying income was $93,552. However, year-over-year comparisons show a different picture. Lawrence Yun, chief economist for the National Association of Realtors, noted that affordability in June was slightly better than June 2025, when mortgage rates were higher at 6.9% and $110,928 in income was needed to qualify. Yun attributed the relative improvement to income growth outpacing home price appreciation and modestly lower rates compared with the prior year.
Mortgage rates had dipped below 6% in late February before climbing higher following geopolitical developments and inflation concerns. The latest inflation reading showed an annual increase of 3.5%, matching the growth rate in average hourly wages, suggesting wage gains are being offset by rising costs. The affordability slide also reflects seasonal patterns, as home prices typically rise from winter through mid-summer as buying activity increases.
Looking ahead, experts anticipate potential improvements in affordability as the market moves beyond the busy spring and summer buying season, which could give buyers more negotiating power. Yun suggested that year-over-year affordability could improve further if mortgage rates decline toward the levels seen at the beginning of the year, before geopolitical tensions emerged. Meanwhile, a bipartisan housing bill became law July 11, combining measures aimed at increasing housing supply and improving affordability. Experts caution that benefits may take time to materialize, given a reported shortage of more than 4 million homes nationwide.
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