Unexpectedly Intriguing!
03 December 2021

October 2021 saw the median new home sale price in the United States rise to a record 5.56 times the median household income. Consequently, the relative raw affordability of new homes fell to an all time low as rising new home prices once again outpaced the growth of median household income:

Relative Affordability of New Home Prices | Annual: 1967-2020 | Monthly: December 2000 - October 2021

30 year conventional mortgage rates rose in October 2021. At at average 3.07% during the month, they are nearly 0.4% higher than their record low from December 2020. Combined with the rising median sale price of new homes, mortgage payments for a typical new home sold as a percentage of median household income also became less affordable in October 2021.

Mortgage Payment for a Median New Home as a Percentage of Median Household Income, January 2000 - October 2021

The mortgage payments for a median new home rose to 29.0% of median household income in October 2021. That's up from the low of 24.5% recorded at the bottom of the Coronavirus Recession in April 2020.


U.S. Census Bureau. Median and Average Sales Prices of New Homes Sold in the United States. [Excel Spreadsheet]. Accessed 24 November 2021.

Freddie Mac. 30-Year Fixed Rate Mortgages Since 1971. [Online Database]. Accessed 24 November 2021.

Labels: ,

About Political Calculations

Welcome to the blogosphere's toolchest! Here, unlike other blogs dedicated to analyzing current events, we create easy-to-use, simple tools to do the math related to them so you can get in on the action too! If you would like to learn more about these tools, or if you would like to contribute ideas to develop for this blog, please e-mail us at:

ironman at politicalcalculations.com

Thanks in advance!

Recent Posts

Indices, Futures, and Bonds

Closing values for previous trading day.

Most Popular Posts
Quick Index

Site Data

This site is primarily powered by:

This page is powered by Blogger. Isn't yours?

CSS Validation

Valid CSS!

RSS Site Feed

AddThis Feed Button


The tools on this site are built using JavaScript. If you would like to learn more, one of the best free resources on the web is available at W3Schools.com.

Other Cool Resources

Blog Roll

Market Links

Useful Election Data
Charities We Support
Shopping Guides
Recommended Reading
Recently Shopped

Seeking Alpha Certified

Legal Disclaimer

Materials on this website are published by Political Calculations to provide visitors with free information and insights regarding the incentives created by the laws and policies described. However, this website is not designed for the purpose of providing legal, medical or financial advice to individuals. Visitors should not rely upon information on this website as a substitute for personal legal, medical or financial advice. While we make every effort to provide accurate website information, laws can change and inaccuracies happen despite our best efforts. If you have an individual problem, you should seek advice from a licensed professional in your state, i.e., by a competent authority with specialized knowledge who can apply it to the particular circumstances of your case.