Jeroen Blokland, founder of True Insights.

Chart of the week: Homes unaffordable?

Jeroen Blokland, founder of True Insights.

Mortgage rates and home prices are skyrocketing worldwide. That is not good news for housing affordability.

The graph below shows the relationship between the one-year change in US 30-year mortgage rates and the one-year change in the 'Housing Affordability Index'. Roughly speaking, the change in mortgage rates explains about 40 percent of the change in the affordability of a home for sale in the United States. 

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