While this sounds impossible, Black Knight goes on to say:“As of mid-July, it required 19.8 percent of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20-percent down payment and a 30-year mortgage. That was more than 5 percent below the average of 25 percent from 1995 to 2003.”
Right now, your clients may only have to pay an estimated $1,071 a month to purchase an average-priced home, Black Knight’s report shows. This is 6 percent lower than the same time last year, regardless of the fact that the average home’s value rose by more than $12,000 in the same time frame.Year-over-year, buying power is up 10 percent. So, the average client may be able to spend nearly $32,000 more than they could last year, without increasing their monthly payment.
Buying a house doesn’t have to be hard. Your clients can free antivirus for android tablet use our free app to make the once-complicated mortgage process remote and easy.If you have clients who weren’t able to buy last year, or who were set back by the spring slowdown at the onset of the pandemic, they’ll appreciate this welcome news. Their patience has paid off. Now, they can afford to purchase 10-percent more house than what they could have a year before — while keeping their monthly payment the same.Mortgage rates have hit all-time lows nine different times this year. This makes it cheaper to borrow. It also makes a home much more affordable over a loan’s lifetime.
“In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below 3 percent. That drop in the mortgage rate from 3.23 percent in May to 2.98 percent in July increased house-buying power by nearly $15,000.”This map depicts how many years ago houses were as affordable as they are now in each state:
real estate articles to shareHomes haven’t been this affordable for over 25 years in six states: Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia.Clients considering a move may be happy to hear that now’s a prime time to leverage this affordability granted by falling mortgage rates. Whether it’s a first-time or repeat buyer hoping to sell and trade up, they can rest assured that by locking in a historically low rate, they’ll get more house for less. They’ll also save money on their monthly mortgage.