74 percent of U.S. housing market unaffordable for average wage earners

74 percent of U.S. housing market unaffordable for average wage earners

A cooling off the housing market has not translated to more affordable homes for the average household in the U.S. ATTOM Data Solutions reported last week in its Q3 2019 U.S. Home Affordability Report that homes in 371 of 498 U.S. counties analyzed are simply too expensive for average wage earners.

The most unaffordable markets in the nation included Los Angeles, Orange and San Diego counties. These same regions topped the list in the previous quarter as well.

Affordability was determined by calculating the amount of income needed make monthly house payments on a median-priced home, assuming a 3 percent down payment and a 28 percent debt-to-income ratio and compared it to weekly income data in each region.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.375 percent.

Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.