Posted To: MND NewsWire

Roughly 60 percent of U.S. households are effectively priced out of the new home market according to 2021 estimates from the National Association of Home Builders (NAHB). Na Zhao, writing in a pair of posts in NAHB’s Eye on Housing blog says 75.1 million households are unable to qualify for a mortgage to purchase a median priced new home under standard underwriting criteria and, if the median price of a home increases by $1,000, another 154,000 households would join the priced-out list. Further, Na Zhao used a 2.8 percent interest rate in the calculations, and the 30-year fixed rate is now over 3.0 percent. Other underwriting criterion used to determine affordability assumes a 10 percent down payment on a $336,757 home and that the sum of mortgage payments, property taxes, homeowners, and private…(read more)

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Published On: March 11, 2021 / Categories: Mortgage News /