Homeownership Is Cracking Under the Weight of 6.62% Mortgages and a Housing Market Running Out of Steam

The American Dream is starting to price out the people it was built for. As geopolitical tensions ripple through bond markets, mortgage rates have climbed from 5.99% in February to 6.62%, making financing more expensive at the worst possible time. That pressure is colliding with a market where the median home already costs about 5x household income.

• Even STEM workers are getting squeezed, with homeownership slipping from 69% to 67% since 2014, while management and business professionals still lead at ~72%.
• The overall homeownership rate sits near ~65% as war-driven volatility hits bond markets, and traders now price a 40% chance of rate hikes by year-end instead of cuts.

The vanishing entry: NAR principal economist Nadia Evangelou said there aren’t enough homes at affordable price points, “pushing even strong earners out of homeownership.” RSM chief economist Joe Brusuelas pointed to “enhanced volatility” and a rising risk premium as investors worry about fiscal stability, inflation, and war. With rate cuts unlikely and supply still lagging demand, the door to homeownership is moving further out of reach.