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Latest Housing Affordability Data

At the national level, housing affordability is down due to higher prices and steady rising mortgage rates. What is affordability like in your market?

  • Housing affordability is down for the month of July in the United States, as prices remain 13.4% higher than a year ago. Mortgage rates, as measured by the FHFA monthly survey based on July home sales closing, are the highest since February 2012.
  • Incomes are slightly higher and mortgage rates are up abruptly from last month and a year ago, but the average homebuyer can still take advantage of historically low rates.
  • By region, affordability is down from one month ago in all regions, with the West having the biggest drop. From one year ago, affordability is down in all regions. The West has had the largest price gain, at 18.4%, while the Northeast has had the smallest, at 6%.
  • Affordability will probably decline again next month if prices continue to rise along with very little movement in income levels. Affordability could strengthen in the months to come, as prices have decreased from a month ago and most likely reached their seasonal peak for the year. Even with rates increasing, certain metro areas have healthy inventory levels and consumers can still look to purchase before those historically low rates are a thing of the past.
  • Check out the full data release here.
  • The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principle and interest payment to income). See further details on the methodology and assumptions behind the calculation here.

Comments
  1. William B. Ballard

    Affordability is not a problem in most parts of Michigan. Finding a house that has not been stripped down to the bones, hence making it uninhabitable and unfinanceable is a real problem. Since the loss of the majority of the auto industry (G.M.), with its well paying jobs along with most of its private sector support industry employment, we live in a relative wasteland of housing. The Federal Government has just allotted $20.5 million dollars to the City of Flint, MI to tear down nearly 3,300 abandoned and vacant homes in our lovely metropolous. These homes are owned by the City of Flint for back taxes, in an organization they call the “LAND BANK.” Interesting play on words don’t you think?? Our property values plumeted during the housing crisis (CRASH) and have continued to fall every year since. The beautiful 1650 sq. ft. craftsman home I purchased over 30 years ago in the City for only $38,000.00 has a current market value of less than 25% of its original purchase price. There is no one left to buy this property since their are over six (6) vacant homes immediately surrouding my residence. Now back to home affordability. I’m sure you remember the first movie that “Micheal Moore” ever made called “ROGER & ME.” In this so called “documentary film” he showed portions of Flint where the wealthy people of G.M., the politicians, and so called “shakers and bakers” were all partying at their mansions. My home is located 2 blocks north of that somewhat exclusive neighborhood. If I could only get Billy Joel (Allentown, PA)to write a song about the demise of the auto industry and all of the cities destroyed such as Flint, Detroit, Saginaw, Lansing (State Capitol) and most of S.E. Michigan than maybe we could get things moving again in a positive light… Who knows??

  2. Housing Inflation… Remember in May… NAR was worried about Inventory and I said worry about the DIRE WOLVES.. Rates

    http://loganmohtashami.com/2013/05/07/housing-mammoth-stuck-in-tar-has-bigger-problems-to-worry-about/

  3. William B. Ballard

    MOST AFFORDABLE HOMES FOR SALE IN THE ENTIRE MIDWEST!
    The banks and mortgage companies won’t lend a mortgage for less than $25,000.00 in our area. Most homes in the City of Flint, Michigan won’t appraise for more than that amount. In fact most lenders won’t lend any amount within our City. They don’t want to lend here because of our economic difficulties, high vacancy rates and dangerous risk of distruction. We presently have our third Emergency Manager in place of our Mayor and the eight (8) City Council members, since they have run the City over $25,000,000.00 Dollars in debt. Our City Bond rating has plummeted so low we can not borrow any more funds to pay off our bills. We have over 3,300 vacant stripped houses that the City owns for back property taxes (the Feds have just allotted Flint $20.5 million of your tax dollars for us to tear these rat infested houses down), by the way, thank you. So as you probably have sumized, if you have a few hundred dollars cash and want to buy 20 or 30 houses that are ready to be torn down, you too can become a proud homeowner in my City.

  4. Sunny

    Seriously?? Do we all need to be rocket scientists to figure this one out? Artificiallly inflated home values and higher rates = headed down the same path again!!