Housing Affordability Implodes in the USA

This is a larger bubble than at the peak in 2006. This is only through July when mortgage rates were much lower. The number I am most focused on is the qualifying income. In 2019, a household making $50,000 could qualify for a mortgage with conservative criteria: 20 percent down payment and 25 percent of gross income for monthly housing expense. That number was above $89,000 in July. My sense is mortgage rates have gone up faster than homes have decline, but even if not, this number probably hasn't dropped much.

Wages could go up 78 percent...except the Federal Reserve doesn't want wage inflation. If the bond bull market is over, the only way to square this equation is with massive declines in home prices.