Affordability Crisis in Housing

Raleigh News Today | 2 Min News | The Daily News Now! · Jun 26, 2026 · 2m

Mortgage rates dipped briefly in February, sparking hope for a housing market revival—but bounced back quickly, slamming the door shut on affordability before most buyers could act. Morgan Stanley calls that dip a blip, noting home ownership costs have doubled, leaving current homeowners stuck and unwilling to move. Existing-home sales are stuck at 1995 levels, with many homeowners facing monthly payment jumps of $1,300–$1,400—up to 200%—if they tried to relocate. Even with three rate scenarios, Morgan Stanley confirms affordability won’t return to pre-2022 levels. Beyond rates, rising…