Highest Level of Home Affordability in 3.5 Years Nationwide

[Neil Narayan]

• - While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016
• - Buying power for those shopping for a home is up 10% year over year, with home buyers able to afford nearly $32,000 more home than they could have 1 year ago while keeping their monthly payment the same
• - Each of the 25 largest markets are seeing their strongest affordability in more than 2 years, with falling 30-year rates elevating buying power for potential homeowners across the country
• Six states – Louisiana, Arkansas, Iowa, West Virginia, Kentucky and Maryland – are seeing their lowest payment-to- income ratios in more than 25 years
• - While the fallout from COVID-19 continues to weigh on the broader economy, record-low mortgage rates and improved affordability appear to be providing a backstop for the mortgage and housing markets, with 19 of the 22 major markets analyzed seeing their median price per square foot rise from May to June

https://www.blackknightinc.com/black-knights-june-2020-mortgage-monitor/