When economists made predictions for 2014, affordable housing was among the factors thought to be crucial for the economy’s recovery.
The economy, however, gives signs of a meek improvement in the first quarter of the new year, and the state of affordable housing has indeed contributed to that.
Bad weather, high home prices and higher interest rates were all adding to the general lack of housing affordability.
Statistics show that sales of existing homes in March were down from February, and down 7.5% than in March 2013. Same with the new single-family home sales – down 14.5% from February and 13.3% from the same time last year.
Taking a closer look at the number of building permits issued this March, will see that they were 2.4% less than in February, but up 11.2% from March 2013.
Some economists point out that “buying a home isn’t as good a deal as it was a year ago.” Going back to the higher interest rates can shed some light why – a year ago, rates on 30-year fixed-rate mortgage were 3.4%, while now they average at 4.3 %.
Read the full story at The Washington Post.