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Lower Rates Bringing In More Buyers (And Higher Prices)
Wednesday, October 28, 2020
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 in their markets," she says.
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