Tuesday, December 13, 2011
Low Mortgage Rates Keep Housing Affordability High
Mortgage rates continued 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®.
Here’s a closer look at mortgage rates for the week ending Dec. 8.
Read More...Low Mortgage Rates Keep Housing Affordability High