Although finding affordable housing is a struggle for much of the middle class, the current price increases are hitting African-American and Hispanic households the hardest. According to a new study conducted by RedFin, over the last four years the percentage of affordable homes across 30 major metropolitan markets dropped significantly. By 2016, 18 percent of homes were affordable for those earning the median income for Hispanic households and 14 percent for African-American households.
The racial gap in affordability in San Diego is severe where only 5.6 percent of homes on the market are within an affordable range for Hispanics and African-Americans at the median income level. This was closer to 20 percent in 2012. The study is concerning news as the homeownership rate among these two groups is already comparatively low.
Should the current trend continue, Redfin reports, American cities may be at risk of losing both the economic and racial diversity that has been their hallmark.
Today, conforming no-point 30-year fixed mortgage rates are averaging 4 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.