Under One Roof Blog
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Homes Most Affordable in 2 Decades
May 19, 2009 by Tamara Sevigny, Customer Care Director

U.S. home prices are their most affordable in 18 years, according to a report released Monday. Nearly 73% of all homes sold in the United States during the first three months of 2009 were considered affordable. That was the highest percentage ever reported by the 18-year-old Housing Opportunity Index, an analysis of markets compiled quarterly by the National Association of Homebuilders and Wells Fargo Bank. To be deemed affordable, a family making the median national income of $64,000 must be able to buy the property and devote no more than 28% of their income toward housing costs. Plummeting home prices were primarily responsible for sending affordability soaring from just over 60% in last three months of 2008 to 72.5% in the first quarter of 2009. Sinking interest rates also contributed to affordability. A 30-year fixed mortgage averaged less than 5% during much of the quarter, according to mortgage giant Freddie Mac. To read the full article: http://money.cnn.com/2009/05/18/real_estate/most_affordable_cities/index.htm?postversion=2009051907

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