- Rising home prices and interest rates have increased the monthly payment on a median-priced home purchased with a 20 percent down payment by $150/month
- Recent income growth – though better than long-term norms – has not been sufficient to keep up with rising rates and prices
- Affordability is still better than long-term averages across much of the country, but seven states are now less affordable than their long-term norms, with another 12 states approaching that point
- Washington, D.C., requires the largest share of median income (40 percent) to purchase the median-priced home, followed by California (38 percent), Hawaii (35 percent) and Maine (33 percent)
- Model scenarios suggest affordability is unsustainable at today’s pace of home price appreciation and interest rate increase
- Annual growth in home prices slowed slightly in March, suggesting some degree of reaction to tightening affordability may already be occurring at the national level
- READ MORE:https://investor.blackknightinc.com/investors/press-releases/press-release-details/2018/Black-Knights-MortgageMonitor-Housing-Affordability-Stretched-as-Average-Monthly-Payment-to-Purchase-Median-Priced-Home-Rises-14-Percent-Since-Start-of-Year/default.aspx
