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Starter homes more affordable, but rising rates give pause
['Originations Editor', 'Brad Finkelstein Is The Originations Editor Of National Mortgage News. While He Covers The Entire Process', "Brad'S Specialty Is Loan Production And...", 'Technology Reporter', 'Capital Markets Editor']
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Starter homes in June are now 1.5% more affordable than they were a year ago based on the borrower's income, continuing a trend that began last November, Redfin said.
But besides rising mortgage rates, prices for starter properties also have been trending higher to near record highs.
Finding an affordable starter home in several California markets was difficult, though.
Nearly 27% of starter home listings were affordable for a median income earning household.
The maximum loan amount available is $375,000, and total household income cannot exceed 80% of the area median income.