American family reviewing a mortgage payment and household budget beside a high-priced home as 7% mortgage rates strain affordability Economy

When 7% Eats the Family Budget: Homeownership Gets Crushed

A 7% mortgage rate is not historically unusual, but today it sits on homes that cost far more relative to household income. Higher prices, insurance, taxes and down-payment barriers are turning ordinary borrowing rates into an extraordinary family-budget burden.

by Som Bentur
American family reviewing mortgage costs beside a home price and interest-rate comparison between 1981 and 2026 Economy

When 7.5% Hurts More Than 18%: The Mortgage Math Broke

A 7.5% mortgage rate in 2026 can impose a heavier affordability burden than 18.45% did in 1981 because home prices have far outpaced household incomes. Down payments, reduced tax advantages, mortgage lock-in and housing shortages have further weakened access to homeownership.

by Som Bentur