Over 38 million families – or a third of all U.S. households – pay more than a third of their monthly income in housing. According to the Harvard Joint Center for Housing Studies' 2018 State of the Nation's Housing Report, this makes them 'cost-burdened'.
Median sales prices of existing homes have outpaced growth in median household income for the past six years. This was seen most dramatically in large metropolitan markets. Topping the list is San Jose, where the median sales price is 10 times the median household income. This was followed Los Angeles (9.5 times), Honolulu (9.2), San Francisco (8.9 times) and San Diego rounded out the top five with 8.1 times the median income needed to afford a median priced home.
With housing costs taking a large share of personal budgets, some market speculators anticipate a decline in the homeownership rate in the coming years.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4.5 percent, 15-year rates are near 4.0 percent and the 5-year ARM is averaging 4.0 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