A recent Harvard University study found the median home price of nearly $400,000 is almost five times the average income, but three times is considered affordable -- a ratio that has skewed sharply since COVID-19.

New Jersey

First-time homebuyers in the United States are encountering significant affordability challenges as median home prices remain near record highs, close to $400,000. The ratio of home prices to median income has risen to nearly five-to-one, far above the three-to-one ratio considered affordable. Interest rates have stayed close to 7%, discouraging many buyers from entering the market, while prices continue to rise.

Competition is also intense, with first-time buyers competing against financially stronger downsizers. Although there are signs that more homes are staying on the market longer, sellers are generally not lowering prices. Analysts suggest that recent lower-than-expected inflation data could support future interest rate cuts, which may eventually help ease the affordability crisis.

The affordability crisis facing first-time homebuyers

If the president's tariffs will lead to higher prices, it wasn't really reflected in the latest inflation report. The government today said prices in July rose less than expected. CBS News' Monday Watch correspondent Kelly O'Grady here with the numbers and the story behind them. So, what kind of impact did we see? We're seeing a little bit of pressure on prices, but not a huge spike. So the annual inflation rate came in at 2.7 percent. And a big reason is that energy prices have continued to come down. But when you strip out food and energy, the inflation rate was actually above 3 percent. And that reflects some of the tariff pressure in areas like furniture and footwear, things that come from overseas. Another area that we've had an issue with inflation is shelter. So we took a look at some of the challenges facing first-time homebuyers. Do you think it's more of a seller's or a buyer's market right now? I think it's still more of a seller's market. Stacey Esser is a New Jersey realtor and founder of the Stacey Esser Group. Yes, the closing is Tuesday. Affordability is a major barrier for first-time buyers. In July, the median national sale price hovered near a record high, almost $400,000. A recent Harvard University study found that median home price is almost five times the median income. Three times is considered affordable, a ratio that has skewed sharply since COVID. When it comes to getting into the market, how would you characterize those affordability issues? So you just have interest rates that have remained sticky, close to 7%. And a lot of buyers have been waiting for those interest rates to adjust. And while they've been waiting for those interest rates to adjust, prices have just continued to rise. First-time buyers are also up against empty nesters looking to downsize. They're competing for the same house that you are, but they're in a better financial position because they're selling their house. So they're cash rich. Sirvonne Eisfick and her husband own a salon in New Jersey. They know how hard it is. They've been looking for more than two years. How competitive have you found some of these houses that you've put a bid on? Last week, I just offered one house. They said that 19 people offered that house. A small shift may be coming, driven by more inventory. Houses are sitting on the market longer, but that doesn't mean sellers are desperate. Prices tend to be way stickier going down than they do going up. Why? So if you're sitting on a low interest rate, and you're also a buyer, you have a number set in your head. And if you don't get that number, you're just maybe not going to sell. Now the housing market differs vastly by region, but one thing all prospective buyers are hoping for, lower interest rates. Analysts tell us today's tamer inflation data could make the case for a rate cut in context of the broader concerns about economic growth. Alright, tough out there. Kelly, thank you.

The National Guard has started to patrol the streets of Washington after U.S. President Donald Trump declared a crime emergency. He’s also ordered troops to clear out all homeless encampments by the end of the week.

Washington

National Guard starts patrolling Washington

Record-high temperatures across Europe are fanning wildfires across the continent. Experts say a warming climate and an increase in flammable vegetation from rural depopulation are major factors.

Madrid

Historic heat fuels fires across Europe

Hungary's PM Viktor Orbán said the EU attempts to set conditions for a meeting to which leaders of the EU were not invited. He also called for an EU-Russia summit.

Brussels

Ukraine Invasion

EU leaders rally behind Ukraine ahead of Trump-Putin talks

President Trump said Monday he expects that Russia and Ukraine will "land swap" certain territories as part of an eventual ceasefire deal. Mr. Trump is set to meet with Russian President Vladimir Putin in Alaska on Friday.

Trump claims 'land swapping' between Russia, Ukraine will happen

Taylor Swift confirmed her 12th studio album, "The Life of a Showgirl," in a teaser for her upcoming appearance on her boyfriend Travis Kelce's podcast. Swift did not disclose the release date of the album.

Taylor Swift announces new album, 'The Life of a Showgirl'

U.S. President Donald Trump said that his planned meeting with Russian President Vladimir Putin in Alaska on Friday will be to "feel out" the leader as pressure mounts for Russia and Ukraine to make a peace deal.

Trump to meet with Putin in Alaska on Friday

A meeting between US President Donald Trump and Russian President Vladimir Putin is set to take place in Alaska, with European leaders notably excluded from the talks. Until Europe can defend itself, it's not likely to be invited to a great power dialogue, experts have told Euronews.

Alaska

Europe frozen out as U.S. and Russia prepare for Alaska talks

U.S. President Donald Trump said on Monday that Kyiv and Moscow will both have to cede land to end the war in Ukraine and talks with Russian President Vladimir Putin this week will instantly show whether the Kremlin leader is willing to make a deal.

Trump says both sides in Ukraine war will need to cede territory

A prominent Al Jazeera journalist, who had previously been threatened by Israel, was killed along with four colleagues and another journalist in an Israeli airstrike in an attack condemned by journalists and rights groups.

Jerusalem

Middle East Conflict

Israeli strike kills Al Jazeera journalists in Gaza

At last one person is dead, dozens are injured and two people are unaccounted for after an explosion at the U.S. Steel Clairton plant in Pennsylvania on Monday.

Clairton

At least 1 dead, dozens injured in U.S. Steel plant explosion

President Donald Trump has placed the Metropolitan Police Department under federal control and announced he's activating the National Guard to combat crime in Washington, D.C.

Trump deploying National Guard to Washington, D.C.

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair.

Trump and Putin set to meet on Friday without Zelenskyy

U.S. President Donald Trump and Russian President Vladimir Putin are scheduled to meet in Alaska on Friday to discuss ending the war in Ukraine. Kyiv and its allies fear being sidelined and worry any deal could reward Moscow’s occupation of Ukrainian territory.

Kyiv

Ukraine fights for a seat at the table ahead of Trump-Putin summit

Israeli Prime Minister Benjamin Netanyahu is defending his decision to keep fighting in Gaza, despite protests at home and abroad. Debora Patta has the latest.

Tel Aviv-Yafo

Netanyahu defends plan to expand war in Gaza

Ukrainian President Volodymyr Zelenskyy is thanking European leaders for backing his push to join this week's Trump-Putin summit in Alaska, insisting an end to the war must be fair. Willie James Inman has more from the White House.

Anchorage

Countdown begins to Trump-Putin meeting, without Zelenskyy

Violent weather hit several Midwest states over the weekend, with high winds being blamed for the death of at least one person in Nebraska and flash flooding prompting a state of emergency in Milwaukee County, Wisconsin.

Milwaukee

Milwaukee inundated with floodwaters, one dead in Nebraska

Thirty-seven major wildfires are currently burning across nine states in the western United States. Firefighters have made significant progress on the Canyon Fire in California, achieving 62% containment and allowing over 4,000 residents to return home, with minimal property loss reported.

Major fires continue to burn across western U.S.

President Donald Trump's envoy met with the Qatari prime minister on Saturday in Spain to discuss possible deals to end the Israel-Hamas war in Gaza, as Israel's military plans to expand into Gaza City. Meanwhile, families of Israeli hostages and Palestinians alike are pleading for peace.

Families of Israeli hostages, Palestinians plead for ceasefire

Renewed anti-government protests have taken place in Israel, where relatives and supporters of Israeli hostages held by Hamas demanded their release and an end to the brutal war Israel has been waging in Gaza.

Israeli anti-government protesters take to the streets in Tel Aviv

Ukraine's President Volodymyr Zelenskiy said that Kyiv "values and fully supports" a joint statement by European leaders that welcomed U.S. President Donald Trump's efforts to try to end the war, while emphasizing the need to pressure Russia and provide security guarantees for Kyiv.

Europe stresses need to protect Ukraine ahead of Trump-Putin meet

Ukrainian President Zelenskyy has firmly rejected Russia’s proposal requiring land concessions to end the war. Ukrainian and European officials have submitted a counterproposal to Washington.

Ukraine, Europe counter Russian ceasefire proposal ahead of US talks

There have been more protests, and counter protests, in several British towns and cities, outside of hotels used to accommodate asylum seekers. Some far-right protesters called for one of the hotels to stop housing migrants.

Bournemouth

UK: Anti-immigration & anti-racism protesters face off

A man who opened fire on the U.S. Centers for Disease Control and Prevention headquarters in Atlanta, firing into the complex from a pharmacy and killing a police officer, blamed the COVID-19 vaccine for making him depressed and suicidal, according to reports.

Atlanta

Vaccine conspiracy could be behind Atlanta shooting

The Gifford Fire burning through the rugged backcountry of California's Central Coast is now the state's largest wildfire of the year. It has reached so-called "mega-fire" status and is one of 38 large fires burning across nine states.

San Luis Obispo

Largest California wildfire of 2025 reaches "mega fire" status

President Trump is preparing to take another swing at a deal with President Putin during a high-stakes summit next Friday in Anchorage, Alaska. Ukraine President Volodymyr Zelenskyy says the country will never give up land, even if it means an end to the war.

Trump: Ukraine must cede land for ceasefire; Zelenskyy refuses

The United Nations Security Council is set to hold a rare Sunday meeting to discuss Israel's plan to intensify its 22-month war with Hamas by taking control of Gaza City. CBS News' Debora Patta reports on the conflict and the mounting humanitarian crisis.

Netanyahu's plan to occupy Gaza comes under fire

At least 200 protesters have been arrested at a rally showing solidarity for Palestinians in Gaza, outside the Parliament in London. Crowds are also demonstrating against a ban on the Palestine Action group, after it was designated as a terrorist organisation.

Breakdown