Decoded No. 12: Housing in a 5 Percent World (full note, PDF)
The full 25-page analysis note. With new mortgage rates above 5 percent, US homes are the least affordable since at least 2000. Instant PDF download.
About the author
Decoded, analysis note No. 12. Driss EFFINA, PhD. October 2026. PDF, 25 pages, 14 charts and diagrams, 9 tables.
The 2026 oil shock has pushed the rate on a new mortgage back above 5 percent in the United States, the United Kingdom and Canada, and to 4 percent in Germany. For a household that wants to buy, the question is no longer whether rates will return to the levels of the 2010s but what has to give instead: prices, incomes or time. This note answers that question for the United States, the United Kingdom, France, Germany and Canada with five tools built for it.
Inside the full note:
- Five markets in 2026
- The affordability index
- What moved the burden: rates, prices and incomes
- The required correction
- Valuation: price-to-rent, real prices and the cost of owning
- Transactions and the lock-in effect
- How prices adjust
- Scenarios to 2028
- Leading-indicators dashboard
- Implications for buyers, builders, banks and policy
- What to watch
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