Spring has sprung, and so have home prices. Fannie Mae’s Home Price Index (FNM-HPI) reveals a 1.7% rise in Q1 — mirroring the previous quarter. With affordability already out of reach for many, the dream of homeownership is becoming increasingly elusive.

• Since this time last year, single-family home prices have surged by 7.4% — surpassing rental affordability.
• Mortgage rates soaring to around 7% has also contributed to housing unaffordability — the average American household holds a fixed rate of around 4%.

Homeownership blues: In a recent poll, ~40% of renters worry they’ll never afford a home — while roughly 14% have no desire to own one. Continuous price hikes, driven by limited housing supply and high demand, suggest little relief soon. Fannie Mae’s Dough Duncan predicts ongoing affordability struggles for homebuyers due to “high home prices and elevated interest rates.”