Homeownership Becomes an Elusive Dream as Affordability Tumbles

October 23, 2013
Housing Wire 
mortgage lending news

A U.S. household earning the median national income can afford an average-priced home in just eight of the country's 25 biggest metropolitan areas, according to Bankrate. The cost of buying a home in those markets increased over the last year -- thanks to a nearly 16 percent jump in property prices and a rise in long-term fixed mortgage rates to 4.43 percent from 3.7 percent -- but income gained only 3 percent.

"The simple fact is that the very small improvement Americans have seen in their paychecks hasn't kept pace with a jump in home prices and mortgage rates," said Mike Sante of Interest.com. The report identified Atlanta, Minneapolis, St. Louis, Detroit, and Pittsburgh as the least expensive metro areas and Miami, Los Angeles, New York, San Diego, and San Francisco has the most costly.

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