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How Affordable Are Homes In The US?
A lot of news and articles talk about the issue of housing affordability in the whole of the United States. Let's take a closer look to find out if the same incline happens all across the board.
According to NAR:
"A value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that a family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment."
* The national index results for August came in at 141.2.
* This is up from 138.9 in July, but down 8.3% from last August's value of 153.9.
One big factor in determining affordability each month is the interest rate available at the time of calculation. In August 2017, the 30-year fixed rate mortgage interest rate was 4.19%. This August, the rate rose to 4.78%!
With an index reading of 141.2, housing remains affordable in the U.S. Regionally, affordability is up in three out of four regions.
The Northeast had the biggest gain at 6.2%. The South had an increase of 2.4% followed by ... more
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