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Buying Home Mortgage & Financing NJ Real Estate News

Record High Housing Affordability Index

According to National Association of Realtors:

  • According to Housing affordability conditions have reached the highest since recordkeeping in 1970.
  • NAR’s Housing Affordability  rose to a record high 206. 1 in January 2012, based on the relationship between median home price, median family income and average mortgage interest rate.
  • The higher the index, the greater the household purchasing power.
  • An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family home.  (20% down payment and 25% of gross income devoted to mortgage principal and interest payments).
  • For first-time buyers making small down payments, the affordability levels are relatively lower.
  • Latest data underscores buyer opportunities in today’s market. 
  • Good news for buyers who can qualify for a mortgage.
  • NAR projects the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year.
  • Housing inventory levels have declined.
  • When the access to credit improves, there will be stabilization in home prices.

 

Ask Rosy at 609-915-9665 how first-time buyers making small down payments can buy homes in Mercer, Middlesex or Mercer Counties of New Jersey.