The National Association of Realtors (NAR) recently released their July edition of the Housing 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:Lori Oliver Phone: 214-564-6525 Dated: September 16th 2015 Views: 1,163 About Lori: I am a licensed Realtor in Texas and a Certified Home Stager/Stylist, Color Expert and Interior Deco...
Bring your mutts, pups and pooches to mingle with friends and family f
"I couldn't buy a house at the right moment with a reasonable price If i met a agent who is not like you, You are the helper for me with the right information and gave me help when I desperately need it. Not only you are professional, but also you have been really friendly for my wife, my parents in law and me. I have never met an agent who is good at both of the aspects. "