Home buying power to shrink in new year
A new analysis from real-estate company Zillow indicates that homeowner buying power is lessening in the U.S. if consumers follow the guideline of spending no more than one-third of income on housing costs. According to MarketWatch, “a household earning the national median income in January 2018 could have afforded to buy a $393,700 home. Now, that same household could only afford a $373,000 home, if they wanted to keep their housing-related expenses at or below a third of their monthly income. In that time, mortgage rates have risen from around 4.15 percent to 4.63 percent.”
The market indicates rates will continue to increase in the new year, and homeowners’ buying power will further decline. Read the full article here.