Housing affordability hit its lowest level in nearly six years in June as home prices continued to climb, according to a report from the National Association Realtors.
The prime time to have bought a home was two summers ago, as advised at the time in the EPJ Daily Alert. Notes WSJ, since most Americans take out a mortgage to buy a home, affordability is a function of both prices and interest rates. Home prices have rebounded sharply over the past three years amid a decline in the supply of homes being offered for sale, particularly at the low end of the market. The median home price of $223,300 in June was the highest August 2007. Mortgage rates averaged 4.2% in June, up from 3.7% one year earlier.
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