Housing affordability slips in Q2

Affordability in the housing market is down.Home buyers in the Houston real estate market may have experienced higher costs when purchasing a property, as national affordability dropped in the second quarter.?The National Association of Home Builders/Wells Fargo Housing Opportunity Index revealed 69.3 percent of new and existing homes sold between April and June were affordable to families earning the U.S. median income of $64,400, down from 73.7 percent in the previous quarter.?”Rising home prices signal the improving health in housing markets, and the median price of all new and existing U.S. homes sold in this year's second quarter, at $202,000, was well ahead of the second quarter 2012 median price of $185,000,” said?NAHB?chief economist David Crowe. “Together with rising mortgage rates, this contributed to affordability slipping to the lowest level in more than four years.”Despite lower affordability, buyers may still be jumping into the market to secure a mortgage before rates rise too high. The past couple of months have seen steep increases, but recent speculation that the Federal Reserve will taper in its upcoming monetary policy meeting has kept rates in check in early August, Freddie Mac reported.?Real Estate News brought to you by 2M Realty, a true expert in the online real estate market.

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