Affordability at 10-Year Low, Tariffs and Rate Hikes Made It Worse

Posted To: MND NewsWireWe now have an unfortunate sign that the recovery is complete. The National Association of Homebuilders (NAHB) says housing affordability is the lowest level since just before the housing crisis hit. The NAHB says the Wells Fargo Housing Opportunity Index (HOI) shows that a combination of rising home prices and higher mortgage rates now means that only 57.1 percent of new and existing homes sold during the second quarter of 2017 were affordable to families earning the U.S. median income of $71,900. This is down from the 61.6 percent of homes sold in the first quarter that were affordable to median-income earners and is the lowest reading since mid-2008. The index reflects the increase in the national median home price to $265,000 in the second quarter, the highest median price ever recorded…(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.

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Michael Ayoub, Author NMLS ID 6631