Housing affordability depends on more than mortgage rates. Land availability, zoning, construction costs, household incomes, transportation and local demand all influence the price of shelter.
When supply grows slowly while demand rises, prices can increase even if individual buyers become more productive. High housing costs then affect the wider economy by reducing mobility, increasing household debt and making it harder for younger workers to live near employment centers.
A serious affordability strategy therefore needs multiple tools: more housing where demand is strong, faster permitting, infrastructure investment and policies that protect vulnerable households without permanently restricting supply.