Aspiring homebuyers got some good news this week. They’ll now be able to save a little more for a down payment.
Citing a new report from Zillow, CNN Money says that the median household income outpaced the median home price. Income rose 5.2 percent up to $56,516 from 2014 to 2015, while the median home price increased 5.0 percent to $188,100 in August over the last year. This was the first rise in income since 2007. Home prices have increased greatly since 2012.
In the wake of the 2008 housing crisis, banks also stiffened their lending standards, including down payment requirements. Higher prices mean larger down payments, which are a major obstacle for many potential buyers. Mortgage rates hovering near record lows have helped ease some of the price pain. The average rate of a 30-year fixed mortgage is 3.48%, according to Freddie Mac. A year ago, the rate was 3.86%.