Wealthion · Thursday, July 30, 2026
Ivy Zelman states that for housing affordability to return to trend lines, mortgage rates would need to fall to around 4.5%. She also mentions that builders are offering rate buy-downs as low as 3.99%, but many potential buyers still struggle with debt-to-income ratios.
“You know, I think it's a great question for us to focus on when we look at what would get us back to trend line for affordability. And holding the other variables, mortgage rates, income, home prices, constant, mortgage rates would have to get back to call it 4 and a half percent.”
“And what's interesting about that is that builders, the large production home builders, public builders, predominantly, but private as well, are actually offering mortgage rate buy-downs for 30 years, as low as 4 and a half, 4 and 99, some 3 and 99. And they still have difficulty qualifying people.”