Economist Mohamed El-Erian warned that U.S. housing affordability remains under severe pressure after sharing data showing homebuyers now spend roughly 42% of their income on housing costs.
Citing the Burns Affordability Index referenced by The Wall Street Journal, El-Erian said the figure remains "extremely unaffordable," even though it has improved from a 48% peak reached in late 2023.
The index measures housing costs using a median-priced existing home with a 10% down payment.
Read Also: Zohran Mamdani Reveals Massive NYC Housing Push As Fox Journalist Charles Gasparino Warns His Policies Are 'Existentially Bad' For The City Buyer Pressure Affordability concerns continue weighing on the broader housing market as mortgage rates remain above 6% and home prices stay elevated.
The average U.S. 30-year fixed mortgage rate recently climbed to roughly 6.36%, increasing pressure on buyers already struggling with borrowing costs and limited affordability.
