Housing Affordability and Refi Applications Increase

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Syracruse was the most affordable in Q1 at a score of 93.7, where the median income was $67,700.

Chicago, IL (PRWEB) May 17, 2014

CF Funding shares good news from the National Association of Home Builders’ Housing Opportunity Index (HOI) today as lower home prices and steady mortgage rates caused higher home affordability in Q1 2014. According to the index, 65.5 percent of new and existing homes sold between January and March were considered affordable. The index is adjusted based on the U.S. median income, which was $63,900 in the first quarter. The HOI increased from a score of 64.7 in the fourth quarter of 2013 to 65.5 percent in the first quarter 2014.

Syracruse was the most affordable in Q1 at a score of 93.7, where the median income was $67,700. Also rated highly were Buffalo-Niagara Falls, Youngstown-Warren-Boardman, and Ohio-Pennsylvania. All of the least affordable small markets were in California, including Santa Cruz-Watsonville, Napa, and Salinas.

As CF Funding has stated previously, buying a home in the present market can actually be more affordable than renting. As NAHB Chief Economist David Crowe said, “As home prices and mortgage interest rates are unlikely to go down, the first quarter HOI is another indicator that this is an opportune time to buy.” CF Funding hopes to see more renters achieve the dream of homeownership as the market improves in 2014.

The MortgageNewsDaily also reported positive housing news on Wednesday May 14th, that mortgage and refinance applications rose at the fastest pace in a month. According to the Market Composite Index, mortgage application volume increased by 3.6 percent on a seasonally adjusted basis, for the week ending May 9. The Refinance Index increased 7 percent in comparison to the week before, which is the best increase in nearly a month. Interest rates also decreased last week with the average 30-year fixed-rate mortgage at about 4.39 percent, the lowest rate since November 2013. The average contract interest rate for a 15-year fixed-rate mortgage was also at its lowest since November 2013 at about 3.48 percent.

According to CF Funding loan officer Robert Sepka, “The increase in applications has been evident this week as many spring shoppers took advantage of low interest rates and refinanced or purchased a new home with us. It is a great time to buy as interest rates and home prices are expected to rise later in the year.”

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