Adam Constantine on MLK Jr.’s impact on housing equality

During the interview, Constantine explains why the industry needs to focus on evoking intentional change rather than launching lackluster initiatives.

Navigating capacity concerns amidst record-high volumes

High loan volumes continues to loom large in the new year, making the “one-stop-shop” approach to the servicing and lending process even more appealing.

Amid record-high origination volumes, mortgage fraud risk is down

CoreLogic's recently released Mortgage Fraud Report is the industry standard for nationwide fraud monitoring and analysis. Read the findings here.

How student loan debt impact homeownership

Student loan expert Catalina Kaiyoorawongs shares her practical and tangible advice for people who feel overwhelmed by their student loan debt.

Real Estate

Median-priced homes remain unaffordable for average earners in most cities

Home prices continue to outpace wages in 40% of markets

Affordability issues continue to plague the nation’s housing market, and it appears the situation is only getting worse.

The latest report from ATTOM Data Solutions shows that the median-priced home is too expensive for the average earner in 74% of U.S. markets. That’s up 3% from last quarter.

ATTOM’s report calculated the income needed to make monthly house payments on a median-priced home, assuming a 3% down payment and 28% front-end debt-to-income ratio.

The income required to meet these payments was compared against annualized average weekly wage data from the Bureau of Labor Statistics.

Based on this calculation, it determined that median-priced homes are unaffordable for average wage earners in 353 of the 473 counties considered.

That means that median-priced homes in about 20 additional markets were pushed out of reach for the average Joe since last quarter.

“Despite falling mortgage rates and rising wages, the cost of owning the typical home remains out of reach or a significant financial stretch for the nation’s average wage earners,” said Todd Teta, ATTOM’s chief product officer.

“However, a closer look at the data reveals milder-than-usual increases for the spring, and none as severe as in previous years since the recession,” Teta added. “Therefore, this can help indicate the market may be easing, following similar indicators from recent home-flipping and foreclosure data trends.”

ATTOM’s report revealed that home price appreciation has outpaced wage growth in 40% of markets. And, in 67% of markets, average earners have to use more than 30% of their wages to buy a home.

When looking at the historical average, 61% of markets are less affordable.

But perhaps things are not as bad as they seem.

The data also shows that compared with a year ago, 82% of markets are actually more affordable. The standouts include Los Angeles County, California; Cook County, Illinois; Harris County, Texas; Maricopa County, Arizona; and San Diego County, California.

Most Popular Articles

Prepare for the rise in mortgage rates

Economists offer their takes on how high mortgage rates will climb, how lenders will respond and what impact this will have on the housing market. HW+ Premium Content

Jan 18, 2021 By

Latest Articles

2020 ends with 3.4 million loans in delinquency

The final delinquency tally for December is in, with data revealing that by end of 2020, 1.54 million more mortgages were reported delinquent.

Jan 22, 2021 By
3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please