Helping homebuyers get into high-priced mortgages they can’t afford may have been at the root of the most recent mortgage crisis, but a new Trulia report suggests that buying an expensive home may actually be a good idea in some areas of the country, particularly for millennial buyers.
Article image credited to loreanto / Shutterstock.com
Comments
Related Articles
Many experts expect interest rates to rise later this year or early next year. Although the experts have been wrongly predicting rising interest rates for some time, and there is a compelling argument that interest rates could even go negative, RealtyTrac thought it prudent to run some scenarios on the impact on housing should the experts be right this time.
Nearly half of American renters spend more than 30 percent of their monthly incomes on rent, with one in four contributing more than 50 percent a month. This equates to the worst rental affordability crisis ever seen in the U.S., which should theoretically bode well for single-family home sales activity moving forward. “The middle class can no longer afford rental housing in nearly 90 cities across the United States,” according to recent analysis from Affordable Online Colleges.
Although some housing industry analysts are concerned that home price growth is outpacing wage growth, some are celebrating the news that that U.S. home affordability just hit to a two-year low.