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Home affordability at 10-year low

Posted by The Aramco Group on Wed, Oct 10, 2018 @ 09:10 AM

The American dream of owning a home is more expensive that it’s been at any time in the past decade. A new report from ATTOM Data Solutions on home affordability shows that 84 percent of Americans nationwide could not afford a median-priced home in their county during Q3 2018.

“We’ve reached a tipping point for affordability,” said Daren Blomquist, senior vice president for ATTOM. “Something has to give. Prices cannot climb as quickly as they have been over the last few years.”

Analyzing information from the U.S. Bureau of Labor Statistics, ATTOM found that 30 percent of Americans live in region where they needed a household income of at least $100,000 or more to buy a median-priced home. The study was conducted assuming buyers had at least a three percent down payment and taking out a 30-year fixed-rate mortgage.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.75 percent, 15-year rates are near 4.25 percent and the 5-year ARM is averaging 4.15 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.

Topics: Housing Market, Mortgage rates, household income, home affordability, median price