How Much Can You Afford?
March 22, 2007
How Much Home Can You Afford to Buy in Today’s Market?
Although the median price of a home (real estate) continues to drop nationwide, many are finding it difficult to qualify for their first mortgage. A recent survey conducted by the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), shows that just 2% of new and existing homes sold in California during the previous quarter — with a median average price of $525,000 — were affordable to those earning a median family income of $56,200.
By contrast, this number was higher in different parts of the country including Indianapolis, where 89% of those with a household income of $65,100 could afford a median priced house of $113,000 (down from $122,000 the previous quarter.) While home inventory levels have increased nationwide, a 30-year fixed mortgage has shown a slight decline – from a 6.37% APR national average in 2006 to a 6.07% APR national average this year. Read more
