The 3 Factors That Affect Home Affordability
- nikkicloud5
- Mar 28, 2023
- 2 min read
If you’ve been following the housing market over the last couple of years, you’ve likely heard about growing affordability challenges. But we are here to share with you the key factors that determine housing affordability are projected to improve this year. The three measures used to establish home affordability are home prices, mortgage rates, and wages. Here’s a closer look at each one.
1. Mortgage Rates Mortgage
rates shot up to over 7% last year, causing many buyers to put their plans on hold. But things are looking different today as rates are starting to come down. Even a small change in rates can impact your purchasing power. Be sure to work with Nikki Cloud & The Key Team because we know the latest on mortgage rates and can give you the best advice for the current market.
2. Home Prices
The second factor at play is home prices. Home prices have made headlines over the past few years because they skyrocketed during the pandemic. So, while prices will likely be flat this year in some markets, others could see small gains or slight declines. It all depends on your local area. For insight into what’s happening in your market and how prices are impacting affordability, reach out to Nikki Cloud!
3. Wages
The final component in the affordability equation is wages. When you think about affordability, remember the full picture includes more than just mortgage rates and prices. Wages need to be factored in as well. Because wages have been rising, many buyers have renewed opportunity in the market.
If you have questions, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your financing options. You may be closer to owning a home than you think.
Contact Information:
(682) 559-2210 | Nikkicloud@kw.com
Nikki Cloud & The Key Team
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