Jerry Alley
Jerry Alley
Coldwell Banker Newsletter

  company
       

 



               


WHAT FACTORS ARE STABILIZING HOUSING AFFORDABILITY?

A "pretty amazing balancing act" between low interest rates and rising home prices is reportedly keeping affordability stable at the national level, according to the latest Black Knight Mortgage Monitor.

The report found that the average U.S. home value increased by $13,500 from the year prior, but low interest rates mean the monthly P&I payment on the median-priced home is only a dollar less than last year. Additionally, it currently takes only 20 percent of the median monthly income to cover monthly payments on the median-priced home. This is well below historical norms.

Despite these national levels, affordability varies across the country based on home price appreciation (HPA). For example, the report shows that in Washington and Oregon, it costs 5-6 percent more in P&I each month to buy the median priced home than the year before. In contrast, states such as New Jersey, Wyoming, North Dakota and Connecticut cost 3-5 percent less each month than in the previous year.

If the rates where to increase though, this would disrupt the balance that affordability is seeing nationally. The report computes that a 50-basis point increase in interest rates would be equivalent to a $17,000 increase in the average home price, thus potentially bringing the affordability ratio up to 21.5 percent of median income. That would make affordability the highest it's been post-crisis. With a 1 percent rise in rates, the payment-to-income ratio would potentially increase to 23 percent, the equivalent of increasing the cost of the average home by $34,000.

Additionally, at 1 percent, the rate of all mortgages that are in active foreclosure fell to its lowest point in nine years. Month-over-month, the number of active foreclosures dropped 3.38 percent but it was year-over-year where the truly substantial decrease was seen, 31.23 percent. Total foreclosure starts fell to 61,700 this month, a decrease of 10.32 percent from the previous month and 22.78 from the year prior. Likewise, foreclosure sales decreased 5.82 percent from August to 2.03 percent. This was an increase though from last year by 2.47 percent.

Kendall Baer is a Baylor University graduate with a degree in news editorial journalism and a minor in marketing. She is fluent in both English and Italian, and studied abroad in Florence, Italy. Apart from her work as a journalist, she has also managed professional associations such as Association of Corporate Counsel, Commercial Real Estate Women, American Immigration Lawyers Association, and Project Management Institute for Association Management Consultants in Houston, Texas. Born and raised in Texas, Baer now works as the online editor for DS News.

Original Source: DS News
  





















     
  DID YOU KNOW?
Denver, CO
 



   
  It's unlawful to grow dandelions in Pueblo city  
   







NewPanda





Featured Photo

Bottom of stairs, Denver art museum

 

Stats










 

     
   
     









 

 

         

  box
         




           

  TRENDING



GENERAL NEWS & VIEWS
Feature Photo  
HOW TO CREATE A CAPSULE WARDROBE
If you're having trouble picking out what to wear each morning, a capsule wardrobe may be the solution for you.
 MORE


Feature Photo  
CREATE GOOD HABITS THAT STICK
If you're able to satisfactorily answer the question, "Why is this new habit important to me," you're on the path to making it a reality.
 MORE


Feature Photo  
6-INGREDIENT OLD FASHIONED PEANUT BRITTLE
The key to making old-fashioned peanut brittle candy in a flash is - surprise! A microwave!
 MORE




INTERESTING READS


Feature Photo  
UPGRADE YOUR OUTDOORS FOR LESS
Giving your home serious curb appeal doesn't have to break the bank. Try these tips to get the most bang for your buck!
 MORE


Feature Photo  
STEAL THE SHOW WITH AMAZING KITCHEN TILE
In a stunning array of styles and materials, backsplashes are stealing the show in well-designed kitchens.
 MORE


Feature Photo  
ARE YOU FINANCIALLY SECURE?
Establishing financial security is an important goal, but it doesn’t happen overnight.
 MORE






 
           




         

 
 
Jerry Alley 
jerry.alley@coloradohomes.com

         



       


                   

   



 
Jerry Alley 
jerry.alley@coloradohomes.com




   



   



 
Jerry Alley 
jerry.alley@coloradohomes.com