The National Association of Home Builders’ (NAHB’) Housing
Trends Report
for the second quarter of 2020 found slightly less than a
quarter of prospective home buyers could afford a median-priced home in their
local markets, leaving 77 percent shut out.  However, Rose Quint, writing in NAHB’s Eye
on Housing
blog, calls that an improvement from a year ago when only 20
percent could buy. She says that lower interest rates are responsible for the
change.

There is remarkable similarity
across generations.
Among Gen Z, Millennials, and Boomers, 76 percent of buyers
can afford fewer than half the homes for sale in their markets. Among Gen X
buyers the share is even higher, 78 percent. There was also little difference
in affordability across regions.

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Quint says the data for the report
was collected between June 16 and June 28 which is important. The results need
to be interpreted in the larger context of the US economy and the trajectory of
new cases of the coronavirus.
In June, the labor market showed signs of
recovery, gaining 4.8 million jobs and a lower unemployment rate. The 30-year
fixed mortgage rate continued to fall, reaching 3.13% by the last week of the
month and the COVID case rate nationally had been stable through the first half
of the month, only beginning to climb around June 15.   For these
reasons, NAHB assessed the responses as reflecting a period of general
improvement.

The data for the
quarterly Housing Trends report is derived from national polls of a
representative sample of American adults. Because of the short time horizon only
year-over-year comparisons are considered valid.

By Jann Swanson , dated 2020-07-27 11:39:12

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Courtesy of Mortgage News Daily

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