Majority of American Homes Are Affordable

According to a new report, 61.8 percent of new and existing homes that sold between the beginning of July and the end of September were affordable to a family earning the U.S. median income of $63,900. Though down from the second quarter, the percentage of homes that are affordable to median-income earners is still high by historical standards. David Crowe, NAHB’s chief economist, says even with nationwide home prices reaching their highest level since 2007, affordability remains high. Crowe believes rising employment and income, mortgage rates hovering near record lows, and pent-up demand should give the housing market momentum going into 2015. Also in the report, the national median home price rose in the third quarter, climbing from $214,000 to $221,000. But though home prices are up, average mortgage rates fell during the same period. NAHB chairman, Kevin Kelly, says low mortgage rates and still affordable home prices make this a good time to buy a house. More here.

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