American homes are more affordable than they’ve been in 40 years

American homes are more affordable than they’ve been in 40 years — but that could change sooner than you think

March 19, 2018 Tanza Loudenback of Business Insider

Per a recent Business Insider article, buying a home in America now is the most affordable it’s been since 1980 due to the significant drop in mortgage rates. Compare 1981 mortgage interest rate of 16.6% to today’s 4.5% rate range and you see that home buying is now more affordable for millennials compared to their parents. Back in the late 1980s and 1990s, a mortgage payment took up 21% of the typical American’s income, according to a report by Trulia’s parent company Zillow. By the end of 2017, a monthly mortgage payment on the median home in the US required just 15.7% of the typical household income.

That being said things could change. Right now, the US housing market is favorable for sellers and tough for buyers. The combination of rising interest rates and rising home prices due to low inventory can put the squeeze on home affordability…
Read the full article on Business Insider

Get Started on the Path to Homeownership Today with GMFS Mortgage!