Mortgage Rates Continue to Drop, As Does Affordable Housing Supply
Mortgage rates decreased again this week to another new low, but the shortage of homes presents a growing issue: a shrinking supply of affordable homes. In addition, home prices have begun to rise. According to CNBC, 59.6% of new and existing homes sold in the second quarter of this year were considered affordable to buyers with median incomes of $72,900. This the lowest percentage in 18 months and a drop from first quarter’s rate of 61.3% What does this mean for sales during the remainder of 2020? Read more to find out.
The index based its calculations on the national median home price jumping to a record $300,000 from $280,000 and average mortgage rates falling 27 basis points.
The inventory of existing homes for sale at the end of June was down 18.2% annually, according to the National Association of Realtors, leaving just a four-month supply available. Supplies of newly built homes also fell 14.5% annually, according to the U.S. Census.