{"id":1013,"date":"2020-08-13T14:20:36","date_gmt":"2020-08-13T14:20:36","guid":{"rendered":"http:\/\/phphouses.com\/blog\/?p=1013"},"modified":"2020-08-13T14:20:36","modified_gmt":"2020-08-13T14:20:36","slug":"homes-affordable-right-now-years","status":"publish","type":"post","link":"https:\/\/phphouses.com\/blog\/homes-affordable-right-now-years\/","title":{"rendered":"Homes Are More Affordable Right Now Than They Have Been in Years"},"content":{"rendered":"
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Homes Are More Affordable Right Now Than They Have Been in Years<\/p><\/div>\n

Today, home prices are appreciating. When we hear prices are going up, it\u2019s normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes\u00a0more affordable,<\/strong>\u00a0even as prices rise. Here\u2019s why.<\/p>\n

According to the\u00a0Mortgage Monitor Report<\/em><\/a>\u00a0from\u00a0Black Knight:<\/em><\/p>\n

\u201cWhile home prices have risen for 97 consecutive months, July\u2019s record-low mortgage rates have made\u00a0purchasing the average-priced home the most affordable it\u2019s been since 2016.<\/strong>\u201d<\/em><\/p><\/blockquote>\n

How is that possible?<\/strong><\/h4>\n

Black Knight\u00a0<\/em>continues to explain:<\/p>\n

\u201cAs of mid-July,\u00a0it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase<\/strong>, assuming a 20% down payment and a 30-year mortgage. That was more than 5% below the average of 25% from 1995-2003.<\/em><\/p>\n

This means it\u00a0currently requires a $1,071 monthly payment to purchase the average-priced home,\u00a0<\/strong>which is\u00a0down 6% from the same time last year<\/strong>, despite the average home increasing in value by more than $12,000 during that same time period.<\/em><\/p>\n

In fact,\u00a0buying power is now up 10% year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

This is great news for the many buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, they can now\u00a0afford 10% more home<\/strong>\u00a0than they could have a year ago while keeping their monthly mortgage payment unchanged.<\/p>\n

With mortgage rates hitting all-time lows eight times\u00a0this year<\/a>, it\u2019s now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming,\u00a0Chief Economist<\/em>\u00a0at\u00a0First American,<\/em>\u00a0shares<\/a>\u00a0what low mortgage rates mean for affordability:<\/p>\n

\u201cIn July,\u00a0house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three percent.<\/strong>\u00a0That drop in the mortgage rate from 3.23 percent in May to 2.98 percent\u00a0in July increased house-buying power by nearly $15,000<\/strong>.\u201d<\/em><\/p><\/blockquote>\n

The map below shows the last time homes were this affordable by\u00a0state<\/a>:<\/p>\n

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Last time homes were this affordable by state<\/p><\/div>\n

In six states \u2013 Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia \u2013 homes have not been this affordable\u00a0in more than 25 years<\/strong>.<\/p>\n

Bottom Line<\/strong><\/h3>\n

If you\u2019re thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you\u2019re thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, let\u2019s connect today to determine your next steps in the process.<\/p>\n

Contact us:<\/strong>
\nPHP Houses
\n142 W Lakeview Ave
\nUnit 1030
\nLake Mary, FL 32746
\nPh:\u00a0(407) 519-0719<\/span>
\nFax:\u00a0(407) 205-1951<\/span>
\nemail:\u00a0info@phphouses.com<\/p>\n

Let\u2019s Connect:<\/strong>
\nFacebook<\/a>
\nLinkedin<\/a>
\nTwitter<\/a>
\nInstagram<\/a><\/p>\n

THE INFORMATION PRESENTED IN THIS ARTICLE IS FOR EDUCATIONAL PURPOSES ONLY AND SHOULD NOT BE CONSIDERED LEGAL, FINANCIAL, OR AS ANY OTHER TYPE OF ADVICE.<\/em><\/h6>\n","protected":false},"excerpt":{"rendered":"

House Affordability Finish Reading Homes Are More Affordable Right Now Than They Have Been in Years<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[69],"tags":[82,10,18,130,27,91,52,83,217,23,63,20,12,24,48,54,47,19,6,17],"_links":{"self":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1013"}],"collection":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/comments?post=1013"}],"version-history":[{"count":1,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1013\/revisions"}],"predecessor-version":[{"id":1016,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/posts\/1013\/revisions\/1016"}],"wp:attachment":[{"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/media?parent=1013"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/categories?post=1013"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/phphouses.com\/blog\/wp-json\/wp\/v2\/tags?post=1013"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}