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Advanced degrees pay off for house-hunters

Posted by Mehran Aram on Fri, Jul 19, 2019 @ 05:07 AM

In the current housing market where mortgage payments can eat up a large part of the median salary, having an advanced degree can go a long way. A new study conducted by Zillow shows that in many high-priced California cities, homes are largely limited to those with the advanced degrees that yield higher salaries.

The analysis found that median mortgage payments are affordable for those with a high school education in 36 of the 50 largest U.S. metros. The remaining 14 markets require wages associated with at least two-years of college. Income levels for university graduates are necessary to afford a median priced home in many West Coast metros including San Diego.

In even pricier markets like San Jose and San Francisco, monthly mortgage payments are within the brackets of those earning the typical income of someone with a post-graduate degree.

Today, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.

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Topics: Housing Market, Wages, Zillow, Mortgage rates, Mortgage Payments, House Hunters, Advanced Degree