A few of you took issue with the assertion I made in Thursday’s post: Eventually [mortgage interest rates] will go up, but it will probably be a gradual climb, and by the time they get to 6%, incomes will also be higher. Here are a few examples of your criticisms. From Pegasus: Putting your faith…
Category: Statistics
Statistics, number-based analysis, etc.
King County “Affordable” Home Price 21% Higher than Current Median Price Thanks to Low Rates
Since we looked at the affordability index yesterday, Let’s have an updated look at the “affordable home” price chart. In this graph I flip the variables in the affordability index calculation around to other sides of the equation to calculate what price home the median household income could afford to buy at today’s mortgage rates…
How Would 6% Mortage Rates Affect Affordability?
In the comments on yesterday’s post, reader “Topdog” posed the following question: So the Fed stops playing funny money, lets interest float to market rate. Lets say a reasonable 3% premium plus the 3% inflation premium which puts high quality new mortgages at about 6%. How does that affect buyer affordability? That’s a question we…
Non-Distressed Median Price Up 2.1% from August 2011
Here’s a follow-up to the breakdown of prices by distress status, first posted on these pages in July. As of August, the non-distressed median price for King County single family home sales sits at $423,900, up 2.1% from a year earlier. This down slightly from July’s increase of 2.5%, but the last four months have…
Bank-Owned Sales Fall to Lowest Point Since April ’09
The share of single-family home sales in King County that were bank-owned fell to its lowest point in 40 months in August, as just 6.3% of sales were REO. This number peaked at 22.8% in February of this year and has been plummeting ever since. Meanwhile, the share of each month’s sales that were short…