Skip to main content

Lower Income Earners Find New Challenge in Home Affordability

Phil Hall
Mar 05, 2018
Home prices at the lower end of the market have become affordable than the national average, particularly for those in lower income levels, according to new data from Black Knight Inc.

Home prices at the lower end of the market have become affordable than the national average, particularly for those in lower income levels, according to new data from Black Knight Inc.
 
“As prices on Tier 1 properties—those in the lowest 20 percent of home values—have been appreciating at a faster rate than all other tiers for 67 consecutive months,” said Black Knight Data & Analytics Executive Vice President Ben Graboske. “The annual rate of appreciation for these homes is 1.9 percent higher than the market average, and more than 3.6 percent higher than that of properties in the [Tier 5] top 20 percent of prices.”
 
Graboske added that Census Bureau data has determined income growth in the lower quintiles failed to keep with the higher ends of the market, which could be exacerbated as mortgage rates rise.
 
“Overall affordability remains better than long-term historical averages, even taking the recent rate jump into consideration,” he Graboske. “Currently, it takes 23 percent of the median income to purchase the median home nationally, which is still 1.9 percent below the averages seen from 1995-2003. But those in lower income levels are much closer, if not above, such long-term benchmarks. It seems evident that further affordability reductions from rising interest rates could put more pressure on lower-income buyers by increasing competition for lower priced homes, as borrowers’ overall buying power is diminished.”

 
Published
Mar 05, 2018
ChainLogix Appoints New Vice President, Operations

Jeryl Graham hired to accelerate growth in title & mortgage services.

Industry News
Oct 15, 2021
JPMorgan Chase To Commit $8.4M To Improve Household Stability For The Underserved

JPMorgan Chase announced six organizations that will receive philanthropic capital as part of the firm’s $400 million five-year commitment to improve housing affordability and stability for Black, Hispanic and Latino, and other underserved households.

Community
Oct 15, 2021
SRE Mortgage Alliance 'Restructuring & Reorganizing'

Owner of technology-based wholesale residential mortgage lender in El Segundo to determine organization's future.

Wholesale
Oct 15, 2021
Ginnie Mae Issued Record MBS Volume In FY2021

The record $939 billion issued included nearly $73 billion in September.

Industry News
Oct 14, 2021
UWM Completes Test Of Cryptocurrency Mortgage Payments

United Wholesale Mortgage evaluated and accepted the first-ever cryptocurrency mortgage payment in September and an additional five payments in October from borrowers.

Industry News
Oct 14, 2021
Arvielo Re-Appointed To HUD Advisory Committee

Nationwide mortgage lender New American Funding’s Co-Founder and President Patty Arvielo has been re-appointed to serve on the U.S. Department of Housing & Urban Development's Housing Counseling Federal Advisory Committee.

Industry News
Oct 13, 2021