Low Mortgage Rates Keep Housing Affordability High

 Daily Real Estate News

Mortgage rates continue to be near record lows this week, keeping housing at affordable levels for most households.

"Thirty-year fixed-rate loans have declined 0.62 percentage points from a year ago, and  median sales prices on existing homes are off 4.7 percent in the year ending with October," Frank Nothaft, Freddie Mac's chief economist, said in a statement.  "These low rates and home prices have pushed housing affordability to record highs this year."

Monthly principal and mortgage interest payments accounted for 12.6 percent of a median family incomes in October, Nothaft notes.  For the sixth time this year, the National Housing Affordability Index reached another all-time record high, according to the National Association of REALTORS.

Source:  Freddie Mac

Real Estate Facts

• The US Department of Housing and Urban Development (HUD) is offering buyers the opportunity to buy their foreclosed homes for $100 down.  The program is offered until October 2012.  Check out my list of First Time Homebuyer resources page!
   
• First time homebuyers now represent 37% of all homebuyers, versus 50% in 2010 during the homebuyer tax credit.