"The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006 — a decline of nearly 40%," he said in comments on the latest release from Fiserv.
The National Association of Realtors found a similar trend. On Wednesday, the trade group revealed that the median price on existing home sales fell in most of the 150 metropolitan areas surveyed by the organization in the third quarter.
Price declines and low mortgage rates have resulted in a ratio of monthly mortgage payments to median family income that is the lowest on record based on Fiserv analytics.
US Housing Affordability At All Time Low
"Housing affordability has improved dramatically because of declines in both prices and mortgage interest rates," said David Stiff, chief economist at Fiserv. "The monthly mortgage payment for a median-priced single-family home is now $700, compared to $1,140 in 2006 — a decline of nearly 40 percent. Nationally, purchase mortgage payments now account for only 13 percent of monthly median family income, the lowest percentage on record (since 1971), and compared to 23 percent in the first quarter of 2006."
Price declines and low mortgage rates have resulted in a ratio of monthly mortgage payments to median family income that is the lowest on record based on Fiserv analytics . (since 1971)
Although affordability has increased, Stiff said, housing demand remains depressed with existing home sales back to 1998 levels, with the average annual rate trending at 4.3 million units since June.
Sales of existing homes rose 7.7% in August despite tighter lending standards and appraisal problems.
SIX GOOD REASONS TO BUY A HOME
http://www.kiplinger.com/magazine/archives/six-reasons-to-buy-a-home-now.html