Archive: May 2014
In many of the nation’s housing markets, the rent has gotten too damn high. One out of three Americans now live in a housing market where rent for a three-bedroom home eats up more than 30% of the monthly median income, the traditional threshold for affordability, according to RealtyTrac. And in some cities, residents are doling out a much larger percentage of their paychecks.
As 2014 arrived, experts were confident that the 30-year mortgage rate would rise to at least 5% this year as the Federal Reserve cut back a bond-buying program, which had depressed the rates to unheard-of lows in 2013. So much for the experts. The Fed has reduced purchases to $20 billion a month in mortgage bonds, down from $40 billion when the program began in September 2012. Yet lenders this week were offering 30-year fixed home loans at an average of 4.2%, the lowest rate in six months, according to home finance giant Freddie Mac.