Home affordability remains near a post-recession low, and the share of the median income necessary to make principal and interest payments on a median priced home is at a post-recession high of 22.6 percent. The recent pull-back of rates would have a net impact of reducing that cost by $32 per month or adding $11,000 more in buying power with the same monthly payment. However, rising home prices are eating into those savings, taking away about half since the first of the year.
Still homes remain more affordable than before the housing crisis. In 2006, it required about 35 percent of median income to purchase a median priced home, and in the five years leading up to that peak the average was 26.7 percent.
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