Unexpected expenses have some home owners feeling ‘house poor’

The increased costs of upkeep, unexpected maintenance expenses and high purchase prices have some homeowners feeling “house poor,” according to a new study from ConsumerAffairs. The National Association of Realtors’ Housing Affordability Index reports that median monthly mortgage payments have increased by 3.1 percent over the past year, while incomes have risen by just 0.7 percent.

Sixty-nine percent of the 1,000 homeowners surveyed by ConsumerAffairs identified with the “house poor” label. Forty-three percent say their home is harder to afford than initially anticipated.

Still, nearly 90 percent of respondents continue to believe that homeownership is worth it and will have a positive impact on their long-term finances.

Today, conforming no-point 30-year fixed mortgage rates are averaging 3.0 percent and 15-year rates are near 2.25 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 (877) 700-0942 and your questions may be featured in an upcoming article.