Home Prices Are Now Higher Than the Peak of the 2000s Housing Bubble
They cite the numbers in &quot;real terms&quot;, which would mean inflation adjusted:<p>&gt; The average price of American homes, in real terms, is now the highest it&#x27;s ever been<p>Of course, you really need to be looking at mortgage rates to understand housing affordability: <a href="http:&#x2F;&#x2F;www.freddiemac.com&#x2F;pmms&#x2F;pmms30.html" rel="nofollow">http:&#x2F;&#x2F;www.freddiemac.com&#x2F;pmms&#x2F;pmms30.html</a><p>July 2021 average 30-year mortgage rate: 2.87% (with 0.7 points)<p>2008 12-month average 30-year mortgage rate: 6.03% (with 0.6 points)<p>To put that in perspective, a $500,000 mortgage (excluding down payment) would require a $2,073 monthly payment today, but a $3,007 monthly payment at 2008&#x27;s 6% mortgage rates.<p>In other words: Houses are still way cheaper, in actual out-of-pocket terms for average people, than they were in 2008. Today&#x27;s interest rates are way too low.<p>EDIT: Updated with 2008 numbers, thanks to comment below