AMERICAN DREAM RE-COLLAPSES: US HOUSING LEAST AFFORDABLE IN A DECADE | WHAT REALLY HAPPENED


AMERICAN DREAM RE-COLLAPSES: US HOUSING LEAST AFFORDABLE IN A DECADE

In it's latest report, the Black Knight Mortgage Monitor confuses affordability with payment stress and fails to make an apples-to-apples comparison when determining homes are "more affordable" today than in the period 1995-2003.

Nonetheless, the report is interesting for what it does show. I am passing on a number of suggestions to them as to how to make the report better.

MORTGAGE MONITOR BULLET POINTS
It now takes 23.6% of median income to make the monthly payment on the average-priced home, making housing the least affordable it’s been in nearly a decade.

The monthly principal and interest payment needed to purchase the average-priced home has seen a $190 per month increase since the beginning of 2018, an 18% jump.

Despite the recent tightening, housing on average across the U.S. remains more affordable than the long term benchmark (1995–2003) of 25.1%.

Even if home prices were to stay flat, another 0.50% increase in interest rates would make homes less affordable than long term norms.

Webmaster's Commentary: 

So, how can this be a "recovering economy" if the past middle-class reality was very much defined by home ownership?!?

Because the truth of the business is, this economy is only "recovering" for the already monied; it sure as heck not for the rest of us.

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