How rising home prices and mortgage rates are impacting affordability.
This year, the real estate market has experienced significant changes that have impacted both home prices and mortgage rates across the country. As spring and summer arrived, homebuyers faced difficulties in qualifying for favorable rates due to rising housing costs. Today, I’m diving into the data and trends that shed light on the state of housing affordability in 2023. I’ll be focusing on the Northeast region, which has shown some promising signs amidst the challenging landscape.
Over the spring and summer of this year, national housing affordability declined, making it harder for potential homebuyers to enter the market. The housing affordability index revealed that monthly mortgage payments increased by 3.7%. Simultaneously, the median price of single-family homes rose by 2.8%, further exacerbating the affordability issue. As a result, many aspiring homeowners found themselves struggling to meet the financial requirements to purchase their dream homes.
"The Northeast region has shown promise with affordability."
Amidst the nationwide affordability concerns, the Northeast region stood out as a relatively resilient market. This region experienced a remarkable 95% index for mortgage affordability, which means that 95% of qualified applicants in the Northeast were able to purchase a home with only 20% down while putting less than 25% of their monthly income allocated toward housing costs. This is a positive sign and creates an opportunity for more buyers to enter the market and find homes that match their price range.
If you have any questions about buying a home or real estate in general, feel free to reach out to me at (978) 256-3306 or by visiting my website. I’m here to provide guidance and support throughout the buying process.
