Making Housing More Affordable

News that because of sky-high home prices and low supply issues, homeownership has become difficult yet there are some metros where affordable homes are possible for low- and mid-income families.

For almost a decade the housing affordability was at its lowest level shows a report from the National Association of Home Builders (NAHB).

More than half of new and existing homes sold in the third quarter were affordable to families whose national median income was $79,900.

In Q3 of 2021, the national median home price was $35,000 higher than Q3 of 2020, it grew now to a record of $355,000, in Q2 it was $5,000.

During the quarter the average mortgage rate dropped 14 basis points. According to Freddie Mac, the 30-year fixed-rate mortgage averaged 2.98%.

According to NAHB, the most affordable major housing market in Q3 was Lansing-East Lansing, Mich. All the homes sold in the metro added up to 89.1% were affordable to families that earned the area’s median income of $79,100.

The Top 5 Metros Were:

1 — Pittsburgh, Pa., 2 — Indianapolis-Carmel-Anderson, Ind 3 — Scranton-Wilkes-Barre-Hazleton, Pa 4 — Harrisburg-Carlisle, Pa 5 — Davenport-Moline-Rock Island, Iowa-Ill

The current supply chain disruptions and tariffs on Canadian lumber and Chinese steel and aluminum will continue to worsen the affordability problems in the months ahead said NAHB chairman Chuck Fowke.

Fowke said, that the policymakers should fix the weakness in the supply chain which will further disrupt and delay construction projects thereby hurting housing affordability.

In the coming months as the Fed begins to taper the interest rates will gradually rise, said NAHB chief economist Robert Dietz.

He added that to enable housing affordability, policymakers should address supply-chain challenges and aid new home production and slow the rising home prices.

Reference Source: MPA

https://www.compareclosing.com/mortgagenews/making-housing-more-affordable/

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