RealtorMag
Nationwide housing affordability dropped again and is down compared to a year ago, the National Association of REALTORS® reports. Mortgage rates are higher than a year ago and the increase in borrowing costs is one culprit for higher payments among borrowers, as are higher home prices.
Mortgage rates are up 37 basis points from a year ago, while median family incomes rose 4 percent.
“Inventory conditions are very tight and that is not healthy for affordability,” NAR reports on its Economists’ Outlook blog. “Less inventory will cause rising home prices, which tend to benefit the homeowner and not the potential home buyer.”
