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Lower Rates Bringing In More Buyers (And Higher Prices); Applications Rise

Lower Rates Bringing In More Buyers (And Higher Prices); Applications Rise

The percentage of potential home buyers who perceive housing in their market as affordable increased in the third quarter, at least as reported in a recent National Association of Home Builders (NAHB) survey. NAHB's Housing Trends Report says that 27 percent of buyers responding to the survey reported they could afford at least half of the homes available for sale in their markets. This is up from 20 percent in the third quarter of last year. Rose Quint writes in NAHB's Eye on Housing blog that the increased responses indicate that lower mortgage rates have had a stronger impact on some buyers' perceptions of affordability than has rising home prices. "Nonetheless, it is important to keep in mind that most home buyers (72 percent) still say they can afford only a minority of the homes available
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