Typically, prospective home buyers are advised that no more than 28 percent of their income should go toward their mortgage. That’s been the established standard. A house that consumes 28 percent or less of your household income is considered comfortably affordable, meaning you’d likely have no trouble handling its costs and expenses as well as your other financial obligations. These days, though, can a home buyer expect to find a home that meets that standard of affordability? Well, according to ATTOM Data Solutions’ most recent Home Affordability Report, it may be a challenge. The group found the costs associated with a median-priced home now consume 33.7 percent of the average American’s income – a slight increase from 32 percent during the first quarter of this year and almost 6 percent more than the recommended share. Rob Barber, ATTOM’s CEO, says summer buyers should be prepared. “The squeeze is really on for would-be buyers as we go into the summer, which is usually when the housing market is most active,” Barber said. (source)
