First of all, the numbers. The average “starter home” price nationally was $183,500 in the third quarter this year. With 10 percent down and a mortgage rate rate of 5.83 percent, the average during the same time period, a new homebuyer would need annual income of almost $50,000 to qualify for a mortgage.
Here’s the article on CNN and the data come from the National Association of REALTORS®. (Note: REALTORS® is a registered trademark and apparently must always appear written using “uppercase” letters. I don’t understand the need for this — why would a profession be trademarked? What are they trying to protect?)
Regardless, this is just another reason why I can’t consider having my own place at the moment. Eventually, the market will be more favorable.