December 2013 U.S. Economic and
Housing Market Outlook
Freddie Mac released its U.S. Economic and Housing Market Outlook for December showing that housing affordability is being challenged as the year comes to an end.
Highlights from the Freddie Mac Study show that:
Freddie Mac released its U.S. Economic and Housing Market Outlook for December showing that housing affordability is being challenged as the year comes to an end.
Highlights from the Freddie Mac Study show that:
- At a 4.4 percent interest rate
for a 30-year fixed-rate mortgage that prevailed in the third quarter of
2013, more than 70 percent of the country remained affordable. All of the
North Central region remained affordable, while just 36 percent of the
West remained affordable.
- At a 5 percent rate (and no
change in prices/income) approximately 63 percent of the country would be
affordable, at 6 percent mortgage rates 55 percent would be affordable,
and at 7 percent mortgage rates only 35 percent of the country would be
affordable.
- On the plus side, existing homeowners' housing
payment-to-income ratio has fallen to an average of 7.9 percent, its
lowest level since 1980, a positive sign for sustainable homeownership.
See an interactive map
of housing affordability, depending on interest rates.
Thanks for reading,
Francis
Silicon Valley real estate specialist
Detailed, local trends etc...
Current mortgage rates
Great local Nonprofit in the Valley: Community Services Agency.
