Affordability Wanes as Price Gains Trump Low Rates; New Loan Limits Soon
The National Association of Realtors® (NAR) said on Thursday that home prices have continued to grow in each of the 181 areas it tracks for its quarterly metro home price report. Both record-low mortgage rates and depleted inventories of existing homes for sale contributed to the annual growth. "Favorable mortgage rates will continue to bring fresh buyers to the market," said Lawrence Yun, NAR chief economist. "However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast. " Percentage price gains reached into the double digits in 65 percent or 117 of the areas. In comparison, only 15 metro areas recorded double-digit increases in 2020's second quarter. The biggest gainers in the third quarter were Bridgeport, Connecticut
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