WASHINGTON—Homebuying affordability declined for the fifth consecutive month in June, as higher mortgage rates and rising home prices continued to strain prospective buyers despite a slower pace of home price appreciation, according to the National Association of Realtors.
CNBC, citing the Realtors’ latest Housing Affordability Index, reported that a household needed an annual income of $109,152 to qualify for a mortgage on the median-priced existing single-family home in June. The calculation assumes a median home price of $446,400, a 20% down payment and an average 30-year fixed mortgage rate of 6.57%.
The required qualifying income has risen steadily since January, when the median home price was $398,200, the average mortgage rate was 6.19% and buyers needed annual income of $93,552 to qualify for a mortgage, according to NAR data cited by CNBC.
Despite the recent decline in affordability, conditions improved modestly compared with a year earlier.
But Wait a Minute…
“Affordability was actually slightly better, as income growth outpaced home price appreciation and mortgage rates were modestly lower,” NAR Chief Economist Lawrence Yun told CNBC. In June 2025, the average 30-year mortgage rate was 6.9%, and buyers needed annual income of $110,928 to qualify for a mortgage.
CNBC reported mortgage rates had fallen below 6% in late February before climbing again following the outbreak of conflict involving Iran, which raised concerns that inflationary pressures could persist.
According to the U.S. Bureau of Labor Statistics, the consumer price index increased 3.5% over the past year, matching the pace of growth in average hourly earnings. CNBC noted that wage gains keeping pace with inflation limits workers’ ability to improve purchasing power.
Role of Seasonal Trends
Seasonal trends have also played a role. Home prices typically increase between winter and midsummer as buyer activity accelerates, Yun said.
Looking ahead, Yun said affordability could improve modestly after the peak spring and summer buying season.
“We expect slight improvements in affordability as the market moves beyond the busy spring and summer buying season, giving buyers more negotiating power,” Yun told CNBC. He added that affordability could improve further on a year-over-year basis if mortgage rates retreat toward levels seen earlier this year.
Price Growth Slows
Although the median price of all existing homes reached a record $440,600 in June—up 49.2% from June 2020—annual price growth has slowed considerably, according to NAR. Median prices increased 1.8% from June 2025, well below the double-digit gains recorded during the pandemic-era housing boom.
Affordability also continues to vary significantly by region. According to NAR, homes in the Midwest and South generally remain more affordable than those in the Northeast and West.
“Buyers in most markets will find prices still climbing, but at a pace that leaves more room for incomes to catch up than in prior years,” Zillow Chief Economist Mischa Fisher wrote in a recent blog post cited by CNBC.
