However, everyone who had to deal with the fallout from the Great Recession wonders if this hot housing market will collapse, as it did then. He said nationally the average mortgage is only about a third of the value of the home, "which is astoundingly low" and "equity in housing is sky high." So actually, the typical monthly payment is way down despite the home prices being up. "The monthly payment is reflecting not only the high home prices but interest rates, and interest rates are at record lows for mortgages," he said, "Under 2.7 percent by the government index.
One is the downpayment, which is usually a percentage of the sale prices, and the second is the monthly mortgage payments, which are extremely low now. He said there are two big things that factor into housing affordability. The median home price in the city of Reno just reached half a million dollars for the first time, and real estate experts say they’re seeing record median sales of homes across Nevada.īut in a recession, they say you would normally see prices going down.ĭon Layton is the senior industry fellow at Harvard's Joint Center for Housing Studies and the former CEO of Freddie Mac, the federal program that backs mortgages.
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