Naturally, affordability is a big consideration for anyone buying a home. After all, it's a significant purchase and you want to be sure you're getting a good deal. For that reason, recent reports of higher prices and rising mortgage rates may give you the impression that buying a house is out of reach. But new data from the National Association of Home Builders shows otherwise.
That's because, their Housing Opportunity Index found that the majority of “new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $71,900.” In fact, 56.4 percent of homes sold during the third quarter were affordable. But, though that's encouraging news, it is down from the previous quarter when 57.1 percent of the homes sold were considered affordable. Robert Dietz, NAHB's chief economist, said the economy is helping keep homes within reach of the typical buyer but affordability trends are still a concern. “Ongoing job and economic growth provide a solid backdrop for housing demand amid recent declines in affordability,” Dietz said. “However, housing affordability will need to stabilize to keep forward momentum from diminishing as we move into the new year.” More here.