Low Mortgage Rates, Rising Incomes Nudge Housing Affordability In The Right Direction
Forbes Aly J. Yale Senior Contributor
Mortgage rates have hovered below 4% for 10 weeks now, and their impact on overall housing affordability is starting to show.
According to new data, housing affordability is actually at its highest point in 18 months—despite a steady uptick in home prices. In fact, the average home price has jumped $12,000 since last November.
Still, low mortgage rates are muting the impact. Data from property data firm Black Knight shows that declining rates have increased Americans’ home buying power by 15% since last fall, allowing them to purchase a home $45,000 more expensive for the exact same mortgage payment.. Read more here.