It stands out that the housing affordability in the United States is falling. According to an earlier report by propertywire.com, "Housing affordability at a national level in the United States is down from a year ago and is struggling to keep pace with the growth of home prices." The data provided by propertywire.com showed that, "Nationally, affordability is down from 155.2 in June 2014 to 153.1 in June 2015 and down month on month in all regions."
One of the most affected region is the Midwest. It had the biggest drop at 4.8 percent while the West fell only 3.5 percent. It has been a year since affordability is down in all areas excluding the Northeast. In the Northeast region, it had an increase of 1.1 percent. The West saw the prevalent decline in affordability at 3.6 percent and the Midwest had the minimum drop of 0.7 percent.
The challenge is becoming more difficult for the home buyers too. With rates on the rise, potential home buyers may try to hasten their search and purchase process as stated in a previous report by propertywire.com. As the home prices surge higher, it is difficult for families to buy homes. According to a previous report by axiometrics.com, "An index value of 100 indicates that a family earning the median income has exactly enough income to qualify for a mortgage on a median-priced home." Families can opt for lending options that have low down payments. Mortgage applications are currently up, but demand may level off if prices and rates continue to increase as further reported by propertywire.com.
It continues to stand out that the new home construction has preferred the multifamily inventory stock. The affected market is the single family homes which have been lagging in construction. A rise in single family construction can ease the inventory shortage problem and at the same time slow down price growth as further stated in a report by propertywire.com.