Housing affordability dips to a four-year low | Armonk NY Homes

According to an article in The Wall Street Journal, the average mortgage payment on a median-priced home in August as a share of median income was 16%. Furthermore, housing affordability hit a four-year low during the month after the market experienced gains in home prices in the spring and higher interest rates over the course of the summer.

While the data released earlier this week show affordability has been dented, homes are still more affordable than any time between 1989 and late 2008, according to the NAR’s figures.

At prevailing interest rates in August, the mortgage payment on the median priced home stood at $851, or around 16% of the median U.S. income. By contrast, the equivalent mortgage payment one year earlier, at $683, accounted for 13.3% of the median income.

                    Source: WSJ

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