AgentIndustry News

Homebuilders optimistic for buyer’s market

National Association of Home Builders survey finds 85 percent of metro areas experienced uptick in home affordability

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With mortgage interest rates and home prices falling, the National Association of Home Builders is optimistic that these improvements will encourage more people to buy homes, particularly in the Midwest. The NAHB/Wells Fargo Housing Opportunity Index (HOI), released today, found that 66.5 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,800. That’s an increase from the 62.8 percent of homes sold that were affordable to median-income earners in the fourth quarter of 2014. In fact, 85 percent of major metropolitan areas experienced an increase in affordability, said NAHB Chief Economist David Crowe. “The past two quarters have seen an improvement in affordability as mortgage rates remain low,” Crowe said. “Along with favorable home prices and pent-up demand, this broad improvement should help encourage more buyers to enter the marketplace.” According to the inde...