Housing Still Affordable, Despite Pricing Upticks | DSNews

Though credit availability is no worse than mid-2016, it’s no better either. According to the April 2017 Chartbook released by the Urban Institute’s Housing Finance Policy Center on Monday, the credit availability index remained unchanged between Q3 and Q4 2016. Thankfully, housing is still pretty affordable, at least according to historic standards, the report stated.

For January 2017, the median sales price was $234,000, while the max affordable price was $305,861—down slightly over the last quarter of 2016.

“Even if interest rates rise to 5.5 percent, affordability would still be at the long-term historical average.”

If a 5.5 percent rate were, indeed, reached, the max affordable price would be just under $275K—still lower than Q1’s median sales price.

But price isn’t the only thing that could impede a buyers’ ability to purchase a home. Ever-tightening credit access could pose a hurdle, too, and according to the Chartbook, FICO scores on new originations have jumped 32 points in the last 10 years. The lower 10th percentile of buyers this quarter averaged a score of 647. Before the housing crisis, the average was in the low-600 range.

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Housing Still Affordable, Despite Pricing Upticks – DSNews.