Good news if you were shopping for a home in 2012. Home prices coupled with record-low mortgage rates resulted in one of the most affordable housing markets in years, the National Association of REALTORS® (NAR) reports.
NAR tracks affordability through its Housing Affordability Index, which looks at the relationship between median home price, median family income and average mortgage interest rate. NAR is projecting the 2012 housing affordability index to set an annual record. Said NAR Chief Economist Lawrence Yun:
“Although 2012 was highest on record, the excessively tight underwriting precluded many would-be homebuyers from locking-in generational low interest rates,” he said. “Rising home prices and a gradual uptrend in mortgage interest rates will offset improvements in family income, but 2013 likely will be the third best on record in terms of household buying power. A window of opportunity remains open for buyers who can qualify for a mortgage.”
Read NAR’s news release for the details.