Homeownership More Afforadable Now Than In Past

Despite the current shortage of homes, increasing demand, and rising prices faced by Atlanta area homebuyers, new data from Trulia suggests that buying a new home is now the most affordable it's been since 1980, thanks to low home mortgage interest rates. 30 year home mortgage interest rates--which hit 16.8% in 1981-- have fallen to as low as 3.5% during the past several years and currently hover around 4.5%.

Because of lower mortgage interest rates, homeowners today spend about 15.7% of their household income on a typical monthly home mortgage payment on the median home , including property taxes and homeowner's insurance. By comparison, homeowners in the late 1980s and early 1990s spent 21% of their household income on their mortgage.

However, home mortgage interest rates are expected to rise in the coming year, and affordability will be affected. New tax laws limiting home mortgage interest deductions are also expected to impact affordability for new homeowners.

Buying or refiancing a home in Atlanta or anywhere else in the State of Georgia?  Contact Peachtree Mortgage Services, Inc. by phone at 770.481.0052 or by email at peachmtg@bellsouth.net.


* Specific loan program availability and requirements may vary. Please get in touch with your mortgage advisor for more information.