Affordability Improvement First In Many Months
Money is an issue when deciding whether it's a good time for you to buy a house. Your savings, income, and monthly budget will all play a role in determining what you can and can't afford. But your personal finances aren't the only variable dictating how much house you can buy. Current market conditions will also be a factor. Whether home prices and mortgage rates are up or down will affect how far your money will go. That's why recent data from Black Knight Financial is encouraging for anyone considering buying a home. According to their newest Home Price Index, affordability conditions eased in July, marking the first improvement in 16 months. In short, the gains mean prospective home buyers will get more house for their money. One reason conditions have improved is declining mortgage rates. After spiking at the end of last year, interest rates have steadily declined and are now, once again, hovering just above historic lows. The other end of the affordability equation is home prices. Prices, though still rising, are increasing at a slower rate than before. In fact, Black Knight's data shows prices up 3.9 percent from last year. For comparison, annual home price growth was at 6.75 percent in February 2018. More here.