Wage growth and home affordability shows long-term improvement

  • Wage growth is up in 72 percent of housing markets, and outpacing home price appreciation in the majority (55 percent) of markets.
  • The average interest rate on a 30-year fixed rate mortgage is down 37 basis points from a year ago.
  • Americans need 35.4 percent of weekly wages to buy on average.
  • Brooklyn is the most unaffordable market, where buyers need 121.7 percent of average weekly wages to buy a median-priced home.

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The financial elements of homebuying are improving for most Americans, according to RealtyTrac. Wage growth, home price slowdown and falling interest rates are helping boost affordability in many county-level markets, according to the data firm’s Q2 Home Affordability Index.