Report: Housing affordability woes likely here to stay

Report: Housing affordability woes likely here to stay

Report: Housing affordability woes likely here to stay
Anyone who has tried to buy a new home this summer has probably experienced the challenges of slim supply, rising prices and bidding wars. According to a new report, these obstacles are likely to not only continue but actually worsen by the end of the year.

An analysis from Zillow shows that mortgage payments as a percentage of average household income reached 19.4 percent as of June. Should conditions continue as they currently are, the online real estate site anticipates that percentage to grow to more than 23.1 percent by the end of the year.

In high priced housing markets like San Diego, monthly mortgage payments commonly consume over 30 percent of household income. Fortunately, some of the rising cost of homeownership is offset by mortgage rates remaining near all-time lows. Today, conforming no-point 30-year fixed mortgage rates are averaging 2.75 percent and 15-year rates are near 2.00 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.