Posted To: MND NewsWire

It seems every data source in the housing industry has its own definition of affordability, most using a mortgage payment to income ratio based on median home prices and median incomes. While the National Association of Home Builders (NAHB) has an index that follows this profile, it has recently been rolling out its Priced-Out Estimates for the current year. These look at affordability from a slightly different perspective , showing how fragile affordability really is. In a series of articles in its Eye on Housing blog, various NAHB analysts run through combinations of scenarios to determine how many households lose the ability to buy a home as home prices rise or interest rates go up. The NAHB estimates require a household income distribution along with some standard assumptions about the…(read more)

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Source: Mortgage News Daily