Homes are now unaffordable in 99% of the US for average Americans

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Taylor Morrison CEO Sheryl Palmer discusses the headwinds facing the housing market after a drop in August on existing home sales on 'The Claman Countdown.'

Housing prices are growing more unaffordable even with the astronomical rise in mortgage rates, putting ownership out of reach for millions of Americans.

That's according to a new report published by real estate data provider ATTOM, which examined 572 U.S. counties and determined that median home prices in 99% of those areas are out of reach for the average income earner, who makes about $71,214 annually.

«The latest trend continues a two-year pattern of homeownership getting more and more difficult for average U.S. wage earners,» the report said. 

Affordability is worsening across the country, thanks to a third-quarter spike in both home prices and mortgage rates. Combined, the two have helped to push the typical portion of average wages nationwide required for major homeownership expenses up to 35%.

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Affordability is worsening across the country, thanks to a third-quarter spike in both home prices and mortgage rates. (Andrew Caballero-Reynolds/AFP via / Getty Images)

«The latest number is considered unaffordable by common lending standards, which call for a 28% debt-to-income ratio,» the report said. «It marks the highest level since 2007 and stands well above the 21% figure from early in 2021, right before home-mortgage rates began shooting up from historic lows.»

There are several reasons to blame for the worsening affordability crisis.

The Federal Reserve's aggressive interest-rate hike campaign sent mortgage rates soaring above 7% for the first time in nearly two decades last year. Rates have been slow to retreat, notching