Mortgage

Detroit mortgages, affordable; San Francisco, not so much

Survey highlights mortgage affordability diparities between key markets

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As the spring housing season gets underway, economists are taking note of extremes between mortgage affordability in different real estate markets. A new survey from realtor.com predicts that Detroit will be the most affordable and San Francisco the least affordable market this year. The online real estate services provider released the results of its first-ever Mortgage Affordability Report today, pulling data from the largest 25 housing markets in the country. Thirty-year, fixed-rate mortgages in Detroit are forecasted to require 13.2 percent of medium income, which is way below the mortgage qualification threshold of 28 percent. The predicted rent-to-income ratio is higher at 26 percent, according to the survey. Other markets ranked by lowest 2015 predicted mortgage-to-income ratio are St. Louis; Cleveland, Ohio; Atlanta; and Pittsburgh, Pennsylvania. In contrast, the same type of mortgage in San Francisco requires 72 percent of income, which is more than double the 28 p...