When buying a home in the high six figure range, one thousand dollars may not seem like a lot. Yet, a new report released by the National Association of Home Builders says $1,000 increase in a home's price could shut out a large group of buyers.
The "Priced Out" Estimate show that, when examining home prices nationwide, 152,903 households that qualified for a loan would find that they would be unqualified if the price on their prospective home increased just $1,000. In California, that small increase ousts 15,328 households, the largest in the nation.
The number of Americans who find themselves priced out of the housing market may increase if mortgage rates continue to climb. An increased cost in borrowing could push nearly a million households of the market with just a quarter percent climb.
Meanwhile, conforming no-point 30-year fixed rates are averaging 4 percent while the 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.