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Despite recent improvement, home affordability remains near decade low

Posted by The Aramco Group on Fri, Oct 6, 2017 @ 14:10 PM

Housing affordability improved in many markets during the third quarter, but not nearly enough to pull the national average out of a near-decade low. ATTOM Data Solution's Q3 2017 U.S. Home Affordability Index, showed an improvement in 60 percent of the 406 counties in the last quarter. Still, in 79 percent of markets, affordability has decreased on a yearly basis.

Low levels of available homes for sale have been driving up prices. Currently, ATTOM reports that the home affordability index is at it's lowest level since the third quarter of 2008. Affordability is measured by the price of a median-home in a given market compared to average wages.

In San Diego, 64.6 percent of a household's annualized wages are needed to purchase a median priced home of $535,000. Today, conforming no-point 30-year fixed mortgage rates averaging 3.875 percent while 15-year rates are near 3.25 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.