During the last three years, the families of USA faced a phenomenon that reduced the ability to buy a house in half. Since the increase in mortgage rates, which was also accompanied by an increase in property prices, it is increasingly difficult for the middle class to acquire a home.
According to figures provided by Fannie Mae, an organization managed by the US government, and which replied NBCNewsthe average property value for a family throughout the country is currently above US$416,000, while at the end of 2020 it was less than US$360,000.
In addition to the increase in the nominal price, the payment methods are also less accessible today. Today, the average interest rate on a thirty-year fixed-rate mortgage is 7.63 percent, while in 2020, the rate was 2.68 percent. Even if the effect of the pandemic is removed and the previous year is taken, a marked increase is observed, since in 2019 it was 3.78 percent, almost four percentage points lower than the current one.
How much do you have to earn in the United States to buy a house
In line with the above, a representative from the National Association of Realtors in the US (NAR) detailed that in 2020, on average, US$1,100 per month was allocated for a mortgage payment. Currently, almost twice as much is needed.
By reviewing the different indicators, the NAR calculates that The average annual income to be able to purchase a property is currently US$107,232. The analysis considered that it is very difficult to think about buying a property with an income below six figures.
#phenomenon #difficult #middle #class #buy #house #United #States