The Deterioration of Home Affordability
World Property Channel®
February 17, 2014
The U.S. housing market is steadily strengthening but, with this growth, a lack of affordability is also escalating. The National Association of Realtors (NAR) and CoreLogic provide a wide view of the current state of the market. Housing affordability is suffering in major metro areas where supply is tight, wages remain the same and home prices continue to increase. "Added housing supply will help moderate price growth this year, and should help to stem erosion in affordability, but mortgage interest rates are projected to rise above 5 percent by the end of the year," noted Lawrence Yun, the NAR chief economist. More….