According to analysis from Fiserv, housing affordability is at the highest level recorded in nearly 40 years.
The firm reviewed what the average payments for a home loan would be on a median-priced house. It found that they would account for just 12 percent of the median income. This is the lowest since 1971.
Because of the increased affordability, experts from Fiserv feel this will bring even more buyers. First-time homebuyers should drive demand in the coming months, experts say.
Many of these buyers waited on the sidelines for their financial situations to stabilize. In addition, at the market's peak, conditions priced them out of the market. Demand from this group may be high. That, the company claims, could stabilize property values. In this scenario, experts believe prices could grow by 3.9 percent annually until 2017.
Homebuyers who want to make the switch to homeownership before values start to make their way back up may wish to utilize an FHA mortgage or VA loan to help them along the way.
By staying up-to-date on a fluctuating housing market, you'll be able to make informed decisions when it comes to refinancing your home loan or qualifying for a mortgage. Using a home mortgage rate calculator provided by Freedom Mortgage to determine your best course of action could keep some extra cash in your pockets every month.
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