The cheapest financing in almost three years is making it easier for Americans to buy homes.
The Housing Affordability Index from theNational Association of Realtorsincreased to 151.9 in June from 137.7 a year earlier in June. That’s a jump of 10 percent. A higher reading means homes are getting more affordable, per NAR’s magic sauce that measures prices, incomes and financing costs.
Americans trying to buyhomeshave been challenged with a shortage of available properties and prices that have increased at a faster pace than incomes.
The U.S. median price of an existing single-family home was $288,900 in June, up 4.5% from $276,500, according to the data behind NAR’s affordability index. The median family income was $78,916, up 3.5% from $76,217 a year ago.
The big difference between this June and a year earlier was mortgage rates. The average 30-year fixed rate was 3.84%, NAR said, compared to 4.74% last year. That meant the average monthly mortgage payment, measuring principal and interest, was $1,082 in June, compared with $1,153 a year ago. The payment as a percentage of income was 16% in June, down from 18% a year earlier.
Rates have dropped since June. The average U.S. rate for a 30-year fixed mortgage is 3.6% this week, matching last week, according toFreddie Mac.That’s the lowest rate since November 2016. A year ago, the rate was 4.53%, Freddie Mac said.
For more information on the housing market in the Washington, DC and Maryland Metropolitan area feel free to call Kiona at 202-656-8012 or visit at DMVPropertyGal.com
Author:Kiona Simon Phone: 757-218-3775 Dated: August 21st 2019 Views: 134 About Kiona: Buying or selling a house can be an overwhelming and daunting process. Kiona Simon is ready, willin...
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Sharee began in the Real Estate industry in the year 2000 as a Mortgage Originator. Education and Empowering others are true and given passions for her; she formed a non-profit organization (Youth Essentials, LLC) in 2007. Sharee has impacted many lives and continues to do so through her career in Real Estate.
Her mission is to lead thousands to home ownership! As an agent who's an expert in this local area, she brings a wealth of knowledge and expertise about buying and selling real estate. Contact her today!