According to the National Association of Home Builders / Wells Fargo Housing Opportunity Index (HOI) released this week, modest U.S. home price and interest rate decreases resulted in a slight increase in nationwide housing affordability in the fourth quarter of 2015.
“Affordable home prices, attractive mortgage rates, and pent-up demand are keeping the housing market on a gradual, upward path,” said NAHB Chairman Ed Brady, a home builder and developer from Bloomington, Ill. “While this bodes well for housing in 2016, builders continue to face a number of challenges, including excessive and costly regulations and a lack of available lots and skilled labor.”
“The signs point to continuing growth in home sales,” said NAHB Chief Economist David Crowe. “We’ve seen an improvement in affordability due to favorable home prices and interest rates. Steady employment and economic growth, along with rising consumer confidence and pent-up demand will also help encourage more buyers to enter the marketplace.”
Source: World Property Journal