When housing affordability deteriorates, most people expect the cause to be obvious.
Home prices must be rising.
That seems logical. If houses become more expensive while household incomes remain relatively stable, buying becomes harder.
But today's housing market demonstrates why that explanation is incomplete.
Housing can become less affordable even when...
For years, rising home equity has been one of the clearest financial benefits of owning a home.
A homeowner buys a property, pays down the mortgage, benefits from potential appreciation and gradually builds a larger ownership stake in the property. Over time, that equity can become a source...
For years, homebuyers have been taught to begin their search with a few familiar numbers.
The purchase price.
The down payment.
The mortgage rate.
And the estimated monthly mortgage payment.
Insurance was usually somewhere further down the list.
That approach is becoming increasingly difficult to justify.
As homeowners insurance costs rise across many parts...
The U.S. housing market is becoming more buyer friendly in several important ways.
There are more homes available than there were a year ago. Properties are taking longer to sell in many markets. Sellers are facing more competition from other listings and some buyers are gaining more room...
For homeowners who are locked in a mortgage rate during 2020 or 2021, today's housing market can create a difficult financial choice.
Their home may be worth substantially more than when they purchased it. They may have built significant equity. They may need money for renovations, debt consolidation,...
For years, one number dominated the homebuying conversation: the monthly mortgage payment.
Buyers would calculate how much they could borrow, compare interest rates, estimate principal and interest and then decide whether the payment fit their budget.
That calculation still matters.
But it is no longer enough.
A growing number of homebuyers...
