“The squeeze is really on for would-be buyers as we go into the summer, which is usually when the housing market is most active,” said Rob Barber, CEO of ATTOM. “Prices just continue to rise and there’s been no relief on mortgage rates. Meanwhile, typical wages are barely increasing from quarter-to-quarter.”
The cost of owning a median-priced home – including mortgage payments, insurance, and property taxes – accounted for 33.7% of the average national wage in Q2. That’s up from 32% in Q1 and far above the 28% lender-recommended maximum.
The median home price climbed to $369,000 in Q2, rebounding from $350,275 in Q1. That increase follows a dip from $355,000 in the last quarter of 2024. During the same period, the average 30-year fixed mortgage rate hovered at 6.82%, reinforcing the strain on borrower budgets.
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Since Q1 2020, the median cost to purchase a home has surged 55.7%. Over that same timeframe, wages have only grown 26.6%, based on the latest Bureau of Labor Statistics data from Q4 2024.