According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), rising job losses in March, due to the COVID-19 pandemic, resulted in a decline in housing affordability in the first quarter of 2020. In all, 61.3% of new and existing homes sold between the beginning of January and end of March were affordable to families earning an adjusted U.S. median income of $72,900. This is down from the 63.2% of homes sold in the fourth quarter of 2019 that were affordable to households earning the median income of $75,500. The HOI reported that the national median home price held steady, edging up from $279,000 in the fourth quarter of 2019 to $280,000 in the first quarter of 2020. Meanwhile, average mortgage rates fell by 17 basis points in the first quarter to 3.61% from 3.78% in the fourth quarter.
FEA compiles the Wood Markets News from various 3rd party sources to provide readers with the latest news impacting forest product markets. Opinions or views expressed in these articles do not necessarily represent those of FEA.
Housing Affordability Down Due to Economic Losses Stemming from COVID-19 Pandemic