Your household budget is a reflection of your personal priorities. No two budgets are the same. That’s why it’s important to take a look at yours when thinking about how much house you can afford. Knowing how and where you’re spending money will give you a good idea of how a monthly mortgage payment will fit into your budget. But while your budget is specific to you, there are some common guidelines. For example, the 28 percent rule. According to the rule, a household should spend no more than 28 percent of its gross monthly income on total housing expenses. This is a common standard used to determine housing affordability. If a house requires more than 28 percent of your income, it’ll likely be a struggle for you to afford it. With that in mind, ATTOM Data Solutions recently looked at how affordable median-priced homes are around the country. The data shows that homeownership remains within the average workers’ financial means. In fact, a median-priced home required 26.3 percent of the average national wage in the first quarter of 2022. That’s higher than previous quarters but still less than 28 percent, which means homeownership remains within reach despite increasing prices and mortgage rates. (source)

Fannie Mae’s monthly Home Purchase Sentiment Index surveys Americans to gauge their feelings about the housing market and economy. The survey asks participants whether they think now is a good time to buy or sell a home, if they believe mortgage rates and prices will rise or fall, and how they feel about their job and income. In March, respondents said they feel now is a good time to sell a house, with 74 percent agreeing that the time is right for homeowners who are ready to make a move. Unfortunately, while the number of participants who think it’s an opportune time to sell continues to rise, the number who say it’s a good time to buy has been falling. Mark Palim, Fannie Mae’s vice president and deputy chief economist, says there are a few factors behind the decline. “The ‘Good Time To Buy’ component of the index reached yet another record low, with high home prices, rising mortgage rates, and macroeconomic uncertainty serving as consumers’ chief concerns,” Palim said. However, though Americans have concerns, they are also feeling more confident about their jobs and income. The survey found 86 percent of participants said they aren’t concerned about losing their job and the number who said their household income is higher than it was a year ago rose 2 percent from the month before. (source)

According to the Mortgage Bankers Association’s Weekly Applications Survey, average mortgage rates continued their climb upward last week. In fact, rates were up from the week before across all loan categories, including 30-year fixed-rate loans with both conforming and jumbo balances, loans backed by the Federal Housing Administration, and 15-year fixed-rate loans. Joel Kan, MBA’s associate vice president of economic and industry forecasting, says rising rates haven’t slowed demand for loans to buy homes. “The hot job market and rapid wage growth continue to support housing demand, despite the surge in rates and swift home-price appreciation,” Kan said. “However, insufficient for-sale inventory is restraining purchase activity.” The lack of homes for sale is especially challenging for first-time home buyers. For example, though purchase loan demand was down 3 percent last week, it fell 8 percent for FHA loans, which are more popular with entry-level buyers. Overall, mortgage application demand was down 6.3 percent last week, mostly due to a 10 percent drop in refinance activity. The MBA’s weekly survey has been conducted since 1990 and covers 75 percent of all retail residential mortgage applications. (source)

When choosing a place to live, you also have to choose whether you’re going to rent or buy. Of course, there are a number of reasons you might choose one over the other. For most of us, though, the decision will largely be financial. Buying a home requires a significant upfront investment and you need to have enough to cover a down payment, closing costs, etc., before you can buy. That may help explain a new analysis that found education level is a good predictor of whether or not a person will own a home. According to the data, among U.S. homeowners, 40 percent have attained a bachelor’s degree or higher and 30 percent have some college or an associate’s degree. By comparison, 23 percent of homeowners have a high school diploma and 7 percent have less than a high school education. That means the vast majority of homeowners have, at least, some higher education. But since the average income for a college graduate is more than twice that of those with a high school diploma or less, it seems income may ultimately be the best predictor of future homeownership. (source)

Success means different things to different people. There isn’t one fixed definition or measurement. But while that’s obviously true, there are certain hallmarks that have long been seen as key components of achieving the American dream. Owning a home is certainly one of them. And, according to a new survey, it continues to be. The survey found that homeownership was the symbol of economic prosperity Americans ranked highest, with 74 percent putting it above being able to retire, having a successful career, owning a car, having children, and getting a college degree. Its ranking was consistent across generations. In fact, it was the top choice among all respondents of any age, except those between the ages of 18 and 25, who ranked a successful career as their top choice. There are likely many reasons Americans continue to hold homeownership in such high regard. But the fact that 72 percent of homeowners said, if given the chance, they would buy their current house again is a pretty good indication stability, personal satisfaction, and happiness are as big a part of it as any financial or economic benefit. (source)

Every homeowner who’s selling their home wants it to attract buyers and sell for the highest possible price. That’s why they remove the clutter, fix any maintenance issues, plants some flowers and make sure their home looks its best before listing it. Makes sense. A good home won’t garner the same amount of interest if it’s presented poorly. But there are other considerations when selling a house. For example, the time of year matters. Homes sold in the winter may not sell as quickly, and for as much, as they would in the spring or summer. According to a recent analysis, even the day of the week makes a difference. In fact, the analysis found homes listed on a Thursday can sell for $1,100 more than if they were listed on a different day. Why? Well, busy buyers often don’t have time to go see available listings during the week. So, a home listed closer to the weekend, gives buyers time to arrange their schedule and plan a time to go out and see it. (source)

The S&P Case-Shiller Indices are considered among the leading measures of U.S. home prices. The index covers all nine Census divisions and is calculated quarterly. According to their most recent release, home prices began the year much the way they ended 2021. Double-digit increases were found in each category, with year-over-year gains slightly higher than the month before. Put simply, home prices continue to rise. Craig J. Lazzara, managing director at S&P, says they’re moving higher in markets nationwide. “The strength in home prices continues to be very broadly based,” Lazzara said. “All 20 cities saw price increases in January 2022, with prices in 16 cities accelerating relative to December’s report. January’s price increase ranked in the the top quintile of historical experience for 19 cities, and in the top decile for 17 of them.” Prices rose fastest in the South and Southeast, with Tampa and Miami trailing Phoenix for the nation’s fastest rising prices. Phoenix has led all cities for 32 consecutive months. (source)