Posted To: MND NewsWire
The National Association of Realtors® (NAR) has uncovered another downside to the increasing lack of housing affordability in the U.S. A new study found that, in many areas where affordability has declined over the last five years, so has the rate of job growth. NAR measures affordability by calculating the ratio of the median family income to the metro area’s qualifying income for a home mortgage or QI. QI is the income needed so that the 30-year fixed mortgage payment on a median-priced single-family home purchased with a 20% down payment accounts for no more than 25% of income. NAR looked at the top 174 metro areas and ranked them by this measure of affordability. It them analyzed the shift in each area’s affordability ranking and the pace of non-farm payroll job growth (generally known…(read more)
Source: Mortgage News Daily
