A new housing industry report shows home affordability worsened in the second quarter. Median-priced single-family homes and condominiums remain less affordable in the second quarter of 2024 compared to historical averages in 99 percent of counties nationwide, according to a report from land, real estate and property data management company ATTOM.
The report also showed that major expenses on a median-priced home accounted for 35.1% of the national median wage in the second quarter, the highest level since 2007 and well above the general lending guideline of 28%.
There are two reasons for this: home prices are at record highs and mortgage rates are around 7%.
“Mortgage rates rose this week, to just below 7%,” said Sam Carter, chief economist at Freddie Mac. “New home sales and sales contracts are both down, while the number of homes for sale is increasing. We expect rates to continue to decline slowly over the rest of the year, and more inventory should moderate price increases, boding well for potential homebuyers.”
Latest Prices
The average interest rate for a 30-year fixed rate mortgage (FRM) was 6.95% as of July 3, up from an average rate of 6.86% last week. The average interest rate for a 30-year fixed rate mortgage at the same time a year ago was 6.81%.
The average yield on a 15-year fixed-rate mortgage was 6.25%, up from last week's average yield of 6.16%. The average yield on a 15-year fixed-rate mortgage was 6.24% at the same time a year ago.
Reporter Mark Huffman
Mark Huffman has been a consumer news reporter for ConsumerAffairs since 2004. He covers real estate, gasoline prices and the economy and has reported extensively on negative option selling. He previously worked as a reporter and editor for The Associated Press in Washington, D.C., and was a correspondent for Westwood One Radio Networks and Marketwatch.
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