United States Housing Affordability Index Remains High

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With fixed-rate mortgage loans continuing to hover near their all-time lows, the overall housing affordability index remains at its high levels. The index is certainly good news for homebuyers, as the low rates and depressed home values provide for a buyer’s market.

While certain markets are considered more affordable than others, the United States residential real estate market as a whole boasts deals on residential properties that are the best that they have been in years. Prime markets are still considerably more expensive, though even those markets are experiencing lower prices. As such, they are becoming increasingly attractive to international buyers.

The most recent report indicates that the rate for thirty-year fixed-rate mortgage loans is just below four percent, with fifteen-year fixed-rate mortgage loans at roughly three and a quarter percent. These numbers are almost a full percentage point lower than what they were last year.

The high affordability index, in combination with a large supply of homes on the market, would lead one to believe that the United States housing market should start to see some significant improvements in the next year. However, residential real estate analysts are not quick to guarantee that improvements will occur due to a multitude of other factors making an impact on housing sales in general.

Although mortgage loan rates continue to remain at low levels, the banks have become increasingly stringent with respect to loan approvals. Only those able to make a substantial down payment on their loans have been able to secure a mortgage loan with the current low rates. Furthermore, questions and insecurities about the job market have caused many potential homeowners to shy away from the current market due to fears over economic instability in the future.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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