The ripple effects of the ongoing housing shortage are far and wide. A new report from The National Association of Realtors shows that the anemic supply of homes for sale on the market has impacted the rate of job growth in many areas. This is particularly true in hot housing markets where the short supply is driving prices beyond affordable levels.
NAR’s analysis included looking at the pace of non-farm payroll job growth in a given market and compared it to the affordability of homes in that region. It was found that in the areas with the most unaffordable homes, new job growth fell faster than the national rate.
The report speculates that in markets where average buyers cannot easily afford a home, employers are less inclined to do business, choosing instead to establish themselves closer to their worker’s communities.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.625 percent and 15-year rates are near 3.125 percent.
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