The National Association of Realtors (NAR) recently released their July edition of theHousing Affordability Index. The index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home at the national level based on the most recent price and income data. NAR looks at the monthly mortgage payment (principal & interest) which is determined by the median sales price and mortgage interest rate at the time. With that information, NAR calculates the income necessary for a family to qualify for that mortgage amount (based on a 25% qualifying ratio for monthly housing expense to gross monthly income and a 20% down payment).
Here is a graph of the income needed to buy a median priced home in the country over the last several years:
And the income requirement has accelerated even more dramatically this year as prices have risen:
Some buyers may be waiting to save up a larger down payment. Others may be waiting for a promotion and more money. Just realize that, while you are waiting, the requirements are also changing.
Author:Deborah Boyd Phone: 940-368-1306 Dated: September 17th 2015 Views: 1,011 About Deborah: My family has lived in North Texas for generations so I personally know the residential areas of Fri...
The Impact of Homeownership on Family HealthThe National Associat
"It is with excitement that I wholeheartedly recommend Jenny Bishop for professional services. Jenny
was a general manager in my district for a national retailer. She consistently ran the top sales increases,
had exceptional customer service scores and excelled at developing high performing talent on her team.
I have watched Jenny generate outstanding results in all of the complex projects that she was given.
Given her quick business mind, excellent communication skills and drive to be the best in her profession,
I have no doubt that she will deliver extraordinary results for anyone she represents.