Home Affordability Crisis May Not be as Bad as it Looks
The home affordability crisis has been a growing concern among prospective buyers and mortgage professionals. However, some professionals believe that the "crisis" could be a bit of an overstatement, according to a recent National Mortgage News piece.
"Low home inventory continues to put upward pressure on home prices, but affordability strains may be overstated, according to First American Chief Economist Mark Fleming," reports NMN's Elina Tarkazikis
"...while it's true that home prices grew faster than income between November 2016 and November 2017, often overlooked in comparing income growth to house price appreciation is that income isn't the only factor in determining how much one can afford to buy."
Purchasing power is still reported at an all time high, according to report. That is despite the increase in interest rates. Fleming stated that even a 5% mortgage interest rate is still very low compared to rate of the past. He also called the recent increase in mortgage rates modest.
To learn more about the home affordability crisis and how serious mortgage professionals and homebuyers should take it, click on the image above.
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