Housing Needs to Fall 30% From Peak to Maintain Affordability

"Even though the Fed has cut short term rates, those in the real estate business know too well that mortgage rates are rising. What is worse, an article in Bloomberg suggests that despite price declines, housing has become less affordable. In other words, even with the drop in purchase prices, the monthly cost of mortgage payments is higher. That of course means residential real estate had to fall further to come in line with incomes."