When it comes to the real estate market, there is a question going around if it can continue to go up and become more valuable for sellers. When it comes to the affordability of a home, it ultimately breaks down into three components which are the price of the home, wages earned by the buyer and mortgage rates. Mortgage rates have dropped from 6% to 4%. Finally, make sure to look into foreclosures as they have continued to dwindle since the peak in 2009.
- When it comes to Mortgage rates, we have seen a decrease from 6% to 4% and stock portfolios have surged.
- Borrowers typically need more assets now as well as a greater credit history to quality for a loan.
- We are currently experiencing a record for home equity which can help move up home buyers over-take first time home buyers.
“This formula has three main components: home price, wages earned by the homebuyer, and mortgage rates.”