The 30-year fixed mortgage rate just hit 8% for the first time since 2000 as Treasury yields soar

[Fiendish Thingy]

15. Median price is down to $416k from $479k at end of 2022

That’s about 13%, and definitely more than the $20k in your example.

If someone had 20% down for a home at $479k, they’d need to borrow $383k, but that same down payment of $96k would mean they would only need to borrow $320k when the price on the $479k home drops to $416k.

If the decline in prices continues, that will offset the increase in borrowing costs and housing will indeed be more affordable, especially for first time buyers, but even for folks like yourself, assuming you have built up some equity.

In your example, if someone was maxed out at $1476/mo for the $350k mortgage, they wouldn’t qualify for the $2025/mo mortgage for $300k.

That’s why prices are coming down, and will continue to come down if rates (and incomes) remain at current levels (and rates are projected to stay high for another 18-24 mos.