Housing affordability hits 15-year low as prices, mortgage rates rise Demand wavers in some areas as housing costs mount Mortgage payments are higher than rent in 45 of the 50 largest U.S. metros, up from 22 in 2019. Price appreciation is finally starting to slow, easing slightly from 20.9% annual growth in April to 20.7% in May. Inventory continues to recover from February lows, but is still 50% below 2019 levels. SEATTLE , June 21, 2022 |PRNewswire| -- Ballooning mortgage costs, driven by skyrocketing prices and interest rates, have made mortgages less affordable than at any time since at least 2007. Demand for homes has pulled back in response, easing price growth, slowing sales and boosting inventory, according to the latest market report 1 from Zillow ®. Mortgage rates have shot up in early June, averaging 5.78% 2 as of Thursday. A new purchase of a typical U.S. home 3 at that rate would mean monthly mortgage payments of $2,127 , that''s 51% higher than a year ago and up 36% year to date. "Mortgage rates took an unprecedented leap skyward over the past two weeks and quickly multiplied housing costs as they rose," said Zillow economist Nicole Bachaud . "We are already seeing signs of waning demand, and expect these recent rate hikes to quicken the market''s needed rebalancing.