Wednesday, August 14, 2013

HOUSING AFFORDABILITY SLIPS

Nationwide housing affordability slipped several notches as recovering markets witnessed significant firming of home prices in the second quarter.
Housing affordability has been hovering near historic highs for the past several years, largely due to exceptionally favorable mortgage rates and low prices during the recession. Now that markets across the country are recovering, home values are strengthening at the same time that the interest rates are going up, cost of building homes is rising due to tightened supplies of building materials, developable lots and labor. Rising home prices signal the improving health in housing markets.
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