Austin Properties GroupAustin Properties Group

    Keller Williams Realty

    (512) 222-3015
    info@austinpg.com
    • Menu
    • Home
    • About APG
      • Meet Our Team
      • Testimonials
      • Why Keller Williams?
    • Austin Neighborhoods
      • Bee Cave Real Estate
      • Buda Real Estate
      • Cedar Park Real Estate
      • Central Austin Real Estate
      • Downtown Austin Real Estate
      • Driftwood Real Estate
      • Dripping Springs Real Estate
      • East Austin Real Estate
      • Kyle Real Estate
      • Lake Austin Real Estate
      • Lake Travis Real Estate
      • Lakeway Real Estate
      • Leander Real Estate
      • North Austin Real Estate
      • Northwest Austin Real Estate
      • Pflugerville Real Estate
      • Rollingwood Real Estate
      • Round Rock Real Estate
      • South Austin Real Estate
      • Southwest Austin Real Estate
      • Steiner Ranch Real Estate
      • West Austin Real Estate
      • Westlake Real Estate
    • Our Properties
    • Staging to Sell
    • Contact

    Homes Are More Affordable Right Now Than They Have Been in Years

    Homes Are More Affordable Right Now Than They Have Been in Years | MyKCM

    Today, home prices are appreciating. When we hear prices are going up, it’s normal to think a home will cost more as the trend continues. The way the housing market is positioned today, however, low mortgage rates are actually making homes more affordable, even as prices rise. Here’s why.

    According to the Mortgage Monitor Report from Black Knight:

    “While home prices have risen for 97 consecutive months, July’s record-low mortgage rates have made purchasing the average-priced home the most affordable it’s been since 2016.”

    How is that possible?

    Black Knight continues to explain:

    “As of mid-July, it required 19.8% of the median monthly income to make the mortgage payment on the average-priced home purchase, assuming a 20% down payment and a 30-year mortgage. That was more than 5% below the average of 25% from 1995-2003.

    This means it currently requires a $1,071 monthly payment to purchase the average-priced home, which is down 6% from the same time last year, despite the average home increasing in value by more than $12,000 during that same time period.

    In fact, buying power is now up 10% year-over-year, meaning the average home buyer can afford nearly $32,000 more home than they could at the same time last year, while keeping their monthly payment the same.”

    This is great news for the many buyers who were unable to purchase last year, or earlier in the spring due to the slowdown from the pandemic. By waiting a little longer, they can now afford 10% more home than they could have a year ago while keeping their monthly mortgage payment unchanged.

    With mortgage rates hitting all-time lows eight times this year, it’s now less expensive to borrow money, making homes significantly more affordable over the lifetime of your loan. Mark Fleming, Chief Economist at First American, shares what low mortgage rates mean for affordability:

    “In July, house-buying power got a big boost as the 30-year, fixed mortgage rate made history by moving below three 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.”

    Homes Are More Affordable Right Now Than They Have Been in Years | MyKCM

    The map below shows the last time homes were this affordable by state:In six states – Arkansas, Iowa, Kentucky, Louisiana, Maryland, and West Virginia – homes have not been this affordable in more than 25 years.

    Bottom Line

    If you’re thinking of making a move, now is a great time to take advantage of the affordability that comes with such low mortgage rates. Whether you’re thinking of purchasing your first home or moving into a new one and securing a significantly lower mortgage rate than you may have on your current house, let’s connect today to determine your next steps in the process.

    Posted in: Buying a Home, Housing Market, Real Estate

    Post navigation

    « The Latest Unemployment Report: Slow and Steady Improvement
    It’s Not Just About the Price of the Home »

    Our Listings

    Property Search

    Advanced Search Map Search

    About Austin Properties Group

    Every single member of our staff lives and breathes Austin, Texas. Truly, we wouldn’t want to be doing this anywhere else. We love our city, and we want you to fall in love with it too. We work with the Texas spirit of hospitality in mind. We are not happy until you are happy. Whatever your request, big or small, we will work with you until you are completely satisfied. Why will every member of Austin Properties Group make every effort humanly possible to ensure your real estate goals are achieved? Because we really care. We care about this city and we care about you. We want you to feel at home in Austin as soon as possible. We are a unique firm and we are proud to be a part of keeping Austin weird.

    Contact Us

    Austin Properties Group
    (512) 222-3015

    1801 S. Mopac, Ste 100
    Austin, Texas 78746

    info@austinpg.com
    (512) 222-3015
    Information About Brokerage Services
    Texas Real Estate Notice Consumer Protection Notice
    © 2023 Austin Properties Group

    Keller Williams Realty | Each office is independently owned and operated.

    Log in