Orange County Housing Report: Is Housing Unaffordable?
As home values rocket upwards, affordability weakens, yet homes are still not too far out of reach for most buyers because of low mortgage rates. Low Rates Prop Up Affordability Even with record level home prices.
Low mortgage rates have kept affordability in check.
Looking only at housing prices tells only part of the story. It is important to also consider household incomes and the prevailing mortgage rates. Naysayers are quick to point out how the median sales price was much lower back in prior years; however, taking into consideration both the median income and the average 30-year mortgage rate illustrates how buyers can afford so much more today. The historically low mortgage…