While housing affordability remains a challenge for many buyers in the U.S., conditions are somewhat improving due to lower mortgage rates.
Buyers need to earn $115,000 to afford the typical home in the U.S., according to a new report by Redfin, an online real estate brokerage firm.
Both declines stem from lower mortgage rates, said Daryl Fairweather, chief economist at Redfin.
"The only reason mortgage payments are down is because of the rate effect," Fairweather said.
While housing overall continues to be unaffordable for most buyers, "this is as good as it gets," said Orphe Divounguy, senior economist at Zillow, as the market is generally seeing lower mortgage rates, more inventory and low buyer competition.
Persons:
Redfin, Daryl Fairweather, Freddie Mac, Fairweather, Orphe Divounguy
Organizations:
Finance, Federal Reserve, Vanguard
Locations:
U.S
![Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Sahil_Hs.Jpg](/find/mix/0?q="Media-Cldnry.S-Nbcnews.Com Image Upload Newscms Sahil_Hs.Jpg"){kind=link}