The 10-year Treasury rate temporarily increased above 1.75% this week — reaching a 14-month high. This is well ahead of forecast and will push interest rates above 3.3% for the average 30-year fixed rate mortgage.
According to recent estimates published by NAHB, the rate increase over the last few weeks prices out approximately 1.3 million households from being able to purchase an average home. Combined with unsustainable growth in home prices (up an average of more than 11% over the last year) and rising construction costs, it is clear that housing affordability is trending lower.
Full article at NAHB.