Affordability is Declining and is Likely to Get Worse

Posted To: MND NewsWire

ATTOM Data Solutions, formerly known to us as RealtyTrac, has released an affordability report which shows that median home prices in the first quarter of 2018 failed to be affordable for average wage earners in 304 or 68 percent of the 446 counties the company analyzed for the report. And a separate CoreLogic report tells us why. The ATTOM report determined affordability by calculating the income needed to make monthly house payments; principal, interest property taxes, and insurance - on a median priced home. Their calculations presumed a 3 percent down payment, the minimum available from FHA and less than required by Fannie Mae and Freddie Mac, and a 28 percent maximum debt-to-income ratio on the "front end," that is required monthly payment on debt before adding the house payment factor...(read more)

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from Mortgage News Daily https://ift.tt/2J6Badx