Join us on LinkedIn Follow us on Twitter Like us on Facebook
 
  OCTOBER RESEARCH STORE Already a subscriber? LOG IN
AddControlToContainer_DynamicNavigation6

Home Affordability nearing an all-time low

Add This Email A Friend Printer Friendly Version
0 comments
Financial Stability
Wednesday, May 4, 2022
Recent data from Black Knight’s Data and Analytics division’s Mortgage Monitor Report showed home prices and interest rates are reaching all-time highs, causing sharp declines in home affordability.

According to Black Knight, home prices rose 2.3 percent in March, making it the fifth time in two years that homes have increased by more than 2 percent in a single month. The annual home price appreciation for March was 19.9 percent, a decline from 20.1 percent in February.

“After accelerating for the last four months, the rate of annual home-price growth actually slowed a bit in March,” Black Knight Data & Analytics President Ben Graboske said. “Still, at 19.9 percent — down from an upwardly revised 20.1 percent in February – March would have otherwise set yet another record for appreciation.”

Black Knight measured the share of median income required to make the premium and interest (P&I) payment on the average-priced home bought with 20 percent down. This measurement indicated U.S. housing was at its all-time least affordable in July 2006, when it took 34.1percent to make that P&I payment.

“At the end of February 2022, we were already at 29.1 percent — and both rates and prices have continued to climb since then,” Graboske said. “As of April 21, that payment-to-income ratio has now climbed all the way to 32.5 percent, within just 1.6 percentage points of the prior record.”

“In ‘kitchen table’ terms, that equates to a $522 higher average monthly P&I payment — a 38 percent increase since January — with that payment up $790 (72 percent) since the start of the pandemic,” Graboske continued. “It won’t take much to push us past 2006 levels either; a 50 basis points jump in 30-year offerings or a 5 percent rise in home prices would push affordability to its worst level on record. And saying that, we should also keep in mind that they’ve already risen 200 basis points and 5.9 percent respectively this year.”

Today's other top stories
Third Circuit adopts ‘reasonable reader’ standard for credit reporting
Wells Fargo wins “secret agreement” arbitration appeal
Trade groups petition CFPB to supervise data aggregators
CFPB warns digital marketers to comply with consumer finance protection laws
SEC charges 11 in $300M crypto pyramid scheme


COMMENT BOX DISCLAIMER:
October Research is not responsible for the comments posted on its websites by readers. We will do our best to remove comments that include profanity or personal attacks or other inappropriate comments.
Comments:

Be the first to leave a comment.

Leave your comment
CAPTCHA Validation
CAPTCHA
Code:
: 
: 
Your Email is for reporting purposes only. It will NOT be displayed.
Popularity:
This article has been viewed 928 times.

Monthly Newsletter

Dodd Frank Update August 2022

Cover Story:

SCOTUS fires warning shot at overreaching agencies


Tweets from @DoddFrankUpdate/lists/industry-news
News by Topic   News by Edition   News by Agency   News by Industry   Special Reports   Webinars
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
 
Dodd Frank Update May 2022
Dodd Frank Update June 2022
Dodd Frank Update July 2022
Dodd Frank Update August 2022
Archives
 
CFPB NCUA
CFTC OCC
FDIC OFR
FHFA SEC
FRB States
FSOC Treasury
FTC  
 
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
 
Forbearance Has Ended, Now What?
2022 State of the Industry
Mortgage Technology
Real Estate Compliance Outlook
Optimizing AI and Blockchain for the Future
Archives
 
Utilizing Tech for RESPA Compliance
Collaborating on eClosings
Economic Forecast Series
Industry and Regulatory Outlook
Archives

Library   About   Subscribe   Store
The Dodd-Frank Act Position Papers
Dodd-Frank Summary & History Legislation
Court Actions Regulations
Enforcement Documents Reports, Studies and Surveys
Guidance Documents Federal Register Notices
White Papers  
 
Dodd Frank Update
Contact / Editors
Advertise
Social Media
Are You An Expert?
Subscriber Agreement
 
Subscriptions
Free Email Updates
Try a Free Edition
 
NS3 The Summit
Other Newsletters
The Title Report
The Legal Description
Valuation Review
RESPA News
Copyright © 2011-2022 Dodd Frank Update
An October Research, LLC publication
3046 Brecksville Road, Suite D, Richfield, OH 44286
(330) 659-6101, All Rights Reserved
www.doddfrankupdate.com | Privacy Policy
VISIT OUR OTHER WEBSITES
> The Legal Description
> RESPA News
> The Title Report
> Valuation Review
> The October Store


Loading... Loading...
Featuring:
  • Delivery 3X a week plus breaking news as it happens
  • Comprehensive title insurance industry news
  • Recent acquisitions, mergers, real estate stats
  • Exclusive in-depth coverage of the industry's hottest stories
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Comprehensive Dodd-Frank coverage
  • The latest information from the CFPB
  • Full coverage of Congressional hearings
  • Updates on all agency actions
  • Analysis of controversial provisions
  • Release of newest studies and reports
Sign up today and...
  • Be one of the first to know where NS3 is being held
  • Learn about NS3 speakers and sessions
  • Save on registration with Super-Early Bird rates
  • Discover the networking opportunities NS3 offers
  • Find out if CE credits will be offered for your area
  • And much more
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Preview the latest RESPAnews.com Top Story
  • RESPA related headline news
  • Quote of the Week
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • Legal, regulatory and legislative information impacting the settlement services industry
  • News from HUD, Congress, state legislatures and other regulatory agencies
  • Follow the lobbying efforts of all the major national real estate services organizations.
Featuring:
  • Delivery 2X a week plus breaking news as it happens
  • The industry's only full-time newsroom
  • Relevant, up-to-date appraisal industry news
  • Covering the hottest stories and industry trends
NEWS BY TOPIC
EDITION
AGENCY
INDUSTRY
SPECIAL REPORTS
WEBINARS
LIBRARY
EMAIL UPDATES
ABOUT
SUBSCRIBE
Banking
Case Law
Consumer Protection
Financial Stability
Industry Spotlight
Legislation
Nonbank Financial
The TRID Journey
CFPB
CFTC
FDIC
FHFA
FRB
FSOC
NCUA
OCC
OFR
SEC
States
Treasury
Appraisal
Broker-Dealer
Community Banks & Credit Unions
Land Title
Mortgage
Payday Lending
Marketing Compliance for Lenders
Real Estate Compliance Outlook
Best Practices
Forbearance
2022 State of the Industry
Archives
2022 Economic Forecast Series
CFPB Update
Move to ANSI Standards
Tech for RESPA Compliance
Collaborating on eClosings
Industry and Regulatory Outlook
Complying with the New CFPB
Evolving Lender Relationships
RESPA Section 9
Getting to Know Your Regulators
Webinar Archives
Executive Interview Series
eClosing Solutions Showcase
Lender Associations
The Dodd-Frank Act
Dodd-Frank Summary
Court Actions
Enforcement Documents
Guidance Documents
White Papers
Position Papers
Legislation
Regulations
Reports, Studies and Surveys
Federal Register Notices
Proposals
Final Rules
GAO
Agency
Contact Us
Advertise
Social Media
Are You An Expert?
Subscriber Agreement