Rising Affordability Now Impacting Home Price Downturn

Facebooktwitterlinkedin

Posted To: MND NewsWire

Black Knight has good news for potential homebuyers , especially those in the market for their first home. The new edition of the company’s Mortgage Monitor says the recent decline in mortgage interest rates has made home affordability the best it has been in 18 months. With the 30-year fixed-rate mortgage hovering around 3.75 percent, it now takes 21.3 percent of the nation’s median monthly income to make a mortgage payment on the median priced home. This is down from 23.3 percent in November of last year and more affordable than the long-term ratio of around 25 percent that was in-play during a time when the market was general considered to be “normal,” 1995 to 2003. It is also much lower than the 34.5 percent ratio at the height of the housing boom. The rising payment-to-income ratio, as…(read more)

Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

Facebooktwitterredditpinterestlinkedinmail
Show Buttons
Hide Buttons