Purchasing a home is a fantastic investment for your future. For many, it is an extremely important goal of their lives. Overall, the main concern of potential buyers is to invest in the perfect home for them without having to sacrifice all of their savings and earnings. 

The National Association of Realtors released the latest housing affordability data on Monday. 

The affordability index measures the household income needed to qualify for a traditional mortgage on a median-priced single family home. So it's looking at a mortgage with a 20 percent down payment and a monthly payment below 25 percent of income at the currently effective rate on conventional mortgages.

                            



Because the index is above a score of 100, this indicates that the "median income is higher than needed to qualify for a mortgage" (Carney, CNBC). We are at the lowest level of affordability since July 2009 because of the rising interest rates and home prices, while wages increased at a much slower pace.

According to the NAR, this shouldn't be dire news. A score of 157.8 officially indicates that a household earning the median income has 57.8 percent more income than needed to get a mortgage on a median priced home.

What are your thoughts on this topic?



http://www.cnbc.com/id/101019905

Consumers Say Home Ownership is Top Priority!

With the real estate market rising, the once forgotten, American dream is making a quick comeback. More and more consumers are showing that owning a home has become their top priority for the future! 

Concerns of the depleting and then crashing economy in 2010-2011 (some areas saw this years prior) caused many consumers to shy away from getting a piece of the American dream. As banks foreclosed on homes, more and more people became renters as a temporary alternative to owning a home. 

Recently, the market has been on the rise, and housing specifically seems to be picking up. A recent survey was conducted by the National Association of REALTORS that showed a concise agreement that consumers view homeownership a top priority as compared to previous years. 

Americans overwhelmingly believe owning a home is a good financial decision and a majority of renters say homeownership is one of their highest priorities for the future. The 2013 National Housing Pulse Survey also found that renters are thinking more about purchasing a home now than in past years, while the number of people who say they prefer to rent has declined. 

                       

Some key findings from the year’s survey include:

• Eight-in-ten Americans believe buying a home is a good financial decision, up 8 points since 2011.
• Half of renters now say that eventually owning a home is one of their highest personal priorities, up 9 points from 2011.
• Respondents expect to see continued improvement, as 37 percent expect real estate sales to increase in the year ahead.

Source: http://www.realtor.org/reports/housing-pulse-surveys