UNCATEGORIZED

Lack of jobs, income jolt homebuyer affordability

Feb 24, 2014, 7:19 AM | Updated: Mar 4, 2016, 5:47 am

Jobs and income growth are key “to turn in another gold-medal performance for the housing recovery” in 2014, according to Frank Nothaft, Freddie Mac’s chief economist.

“Rising home prices and interest rates along with little to no income growth has resulted in a substantial erosion of homebuyer affordability over the past year,” Nothaft said. “If rates continue their upward trend, it will be difficult for many families to purchase a home without seeing some income growth.”

An improving economy is helping to bolster the housing market but lackluster labor reports in January are resulting in a slow start for the residential sector, according to Freddie Mac’s latest Economic and Housing Market Outlook.
Freddie predicts unemployment to stay at 6.6 percent in the second quarter and fall to 6.4 percent by the end of this year.

Despite the Federal Reserve beginning to taper its $85 billion per month bond-buying stimulus program in January, 10-year Treasury yields and fixed mortgage rates mostly eased over the month, falling about 0.3 percentage points between January and early February.

“It appears mortgage rates may have given the market a reprieve for a month or so and provided some borrowers another chance at refinancing, especially those folks that may be holding older mortgages,” Nothaft said.

Uncategorized

kent trooper shot...

Kate Stone

Man faces multiple charges after WSP trooper shooting in Kent

A man accused of shooting a Washington State Patrol trooper multiple times in Kent last Friday has been charged.

1 month ago

Oregon Emergency Landing - (Elizabeth Le via AP)...

KIRO 7 News Staff

‘Everyone was eerily calm,’ recalls passenger aboard ill-fated Alaska Airlines flight

Terror in the skies: A Vancouver, Washington, woman shares the harrowing moments after an airplane blowout over Portland.

3 months ago

Photo: SPD vehicle...

KIRO 7 News Staff

Two men shot at bus stop in North Seattle near Northgate

Two men were shot at a bus stop along Aurora Avenue Wednesday, according to the Seattle Police Department.

5 months ago

Manuel Ellis arrest, Tacoma police officers...

Associated Press

Prosecutors focus on video evidence in trial of Washington officers charged in Manny Ellis’ death

A cellphone video of the 2020 fatal arrest of Manny Ellis shows the Black man on the ground with his hands in the air in surrender

6 months ago

...

No Author

EXPIRED: Win tickets to see Stokley at EQC!

KIRO Newsradio is giving you a chance to win two tickets to see Stokley at the Emerald Queen Casino on Saturday, November 11, 2023!

6 months ago

(File photo)...

L.B. Gilbert

NLRB files complaint against Amazon for unlawful confidentiality agreement

A new complaint from the National Labor Relations Board (NLRB ) is accusing Amazon of requiring some corporate employees to sign an unlawful confidentiality agreement. The complaint states Amazon had required a former employee from its drone project, Amazon Prime Air, to sign an agreement that forbade discussion of information regarding Amazon, whether or not […]

7 months ago

Lack of jobs, income jolt homebuyer affordability