Rising prices for homes and consumer goods are putting a strain on the wallets of homeowners nationwide, according to a new report. The annual State of the Nation's Housing Report from Harvard's Joint Center for Housing Studies reveals that a staggering 39 million households are simply unable to afford their housing needs.
Financial experts suggest that housing costs should not exceed 30-35 percent of monthly income but over a third of American homeowners have surpassed this guideline. Referred to as 'cost burdened' households, 19 million are spending more than 50 percent of their pay on housing costs.
San Diego, Los Angeles and Riverside were among the top cities with the most cost-burdened households.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4 percent while 15-year rates are near 3.125 percent.
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