Home prices rising twice as fast as incomes

Home prices rising twice as fast as incomes

Home prices rising twice as fast as incomes
The median sales price for homes sold in the U.S. in July rose 8.5 percent according to a new report. This is more than double the 4.1 percent increase in family income reported for the month. The National Association of Realtors reported this week that the its affordability index for all major markets in the U.S. were beyond affordable for those making the regional median income.

Despite the sharp increases in home prices compared to the more moderate rate of growth in household income, affordability has improved slightly from 2019. This is largely due to mortgage rates hovering near all-time lows. The less expensive borrowing costs have helped buyers offset rising prices by paying less in interest and locking in a monthly mortgage payment that is more affordable.

Today, conforming no-point 30-year fixed mortgage rates are averaging 2.875 percent and 15-year rates are near 2.5 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.