In a recent weekly rates report, Freddie Mac announced a slight decrease in mortgage interest rates. The average rate for 30-year mortgages now stands at 6.99%, down from just over 7% last week. However, despite the decrease, rates remain higher compared to the same time last year when they averaged at 6.71%. Chief Economist Sam Khater noted that rates are expected to modestly decline for the remainder of 2024.

Similarly, interest rates for 15-year fixed-rate mortgages have also experienced a slight dip. The current rate of 6.29% is down from 6.36% last week, although still higher than the 6.07% average from last year.

On the other hand, home prices are continuing their steady climb, with a national increase of 0.6% recorded in May, according to Realtor.com. Certain areas of the country are seeing even more significant jumps, with the hottest real estate markets experiencing a staggering 13.6% increase in prices. The Manchester-Nashua metro area, for example, has been ranked as one of the hottest markets for five consecutive months.

Despite the high housing prices, the homebuying season is heating up alongside better weather conditions. Active listings have risen by 35.2% year over year in May, with the 20 hottest markets alone witnessing a 15.6% increase in inventory. However, the high demand in these areas is contributing to a fiercely competitive market, which continues to drive prices up.

Amidst these trends, housing affordability has emerged as a top concern among voters as the upcoming election draws near. A recent report by Redfin revealed that 91% of Generation Z, in particular, consider affordability a critical issue in the election. Nevertheless, housing affordability is a pressing matter for voters across all generations, with at least 80% of those surveyed expressing its importance. Interestingly, all generations regarded housing affordability as a more crucial issue than abortion rights, student loan debt, gun rights, foreign wars, and preserving democracy.

Redfin Senior Economist Elijah de la Campa emphasized the significance of housing affordability in this year's presidential election, noting that despite a strong economy, low unemployment, and rising wages, many Americans still find it difficult to afford a home. This challenge is especially palpable among young people, as the cost of starter homes has increased twice as fast as incomes. Housing affordability directly impacts their daily lives, lifestyle choices, and ability to build wealth, making it a crucial factor in their voting decisions.

With mortgage rates experiencing a slight decrease and home prices on the rise, housing affordability has increasingly become a key concern for voters across generations. As the election approaches, candidates will need to address this issue to meet the demands of an electorate deeply affected by housing costs.