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Housing affordability hits 4-year low

The average mortgage payment on a median-priced U.S. home as a share of income rose to 16% in August, according to the NAR. It's all about interest rates, as the rise occurred even as median prices slipped slightly this summer.

Still - by this measure - homes are still more affordable than at any time between 1989 and 2008.

The homebuilding sector is among the worst-performing today amid this news and word of rising incentives (lower profit margins) now necessary to move product.

ETFs: ITB -1.9%, XHB -1.6%.

TOL -2.1%, RYL -3.1%, HOV -1.4%, WLH -3.5%, PHM -2.9%.

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Comments (2)
  • bbro
    , contributor
    Comments (10758) | Send Message
    Nice stunning headline but the key point is.....


    Homes are still more affordable than at any time between 1989 and 2008...


    P.S. Declining job growth with low affordability...that is when you worry...
    14 Oct 2013, 01:55 PM Reply Like
  • billddrummer
    , contributor
    Comments (1744) | Send Message
    shouldn't the headline read 'home affordability at an all time high'?
    14 Oct 2013, 03:00 PM Reply Like
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