The Impact Interest Rate Changes on the Buy Versus Income Ratio

 

The repeated declines in​​ mortgage and other interest rates over the past two years​​ have​​ succeeded in keeping the economy from sinking into recession. It also saw very rapid home price and rent appreciation.

The far right-hand side of Chart 1 shows that in some cities rents increased significantly faster than income.

 

Chart​​ 1 suggests that in some cities, renters are worse off in 2022 than they were in 2018.