Mineral Wells Index, Mineral Wells, TX

Community News Network

November 22, 2012

Five economic trends to be thankful for

(Continued)

— Housing is dramatically more affordable. People often speak as if higher home prices are an unambiguously good thing, but that can be misleading. Sure, a retiree looking to sell off a large house and live in a small condo instead benefits from high home prices. But most everyone else is either better off when buying a home is more affordable rather than less. But to put some more concrete numbers on this idea, I made a simple model to look at what a typical American family would actually have to pay to buy a house over time. Assuming the person took out a 30-year fixed rate mortgage at the prevailing rate in an amount 80 percent of the median home sales price across the country (meaning that they put 20 percent down, allowing them access to low, "conforming" mortgage rates). In the spring of 2006, that typical American home buyer would have faced a monthly mortgage payment of $1,247 a month, or a whopping 41 percent of the monthly average wages of private sector workers. But in the six years since then, home prices have fallen, so have mortgage rates, and wages have risen with inflation. Add it all up, and in the spring of 2012 that median American house would require a mortgage payment of only $889 a month, which is 26 percent of the average private sector employee's pay. For workers just starting out, young families, or those looking to buy a bigger place, that is hard to beat.

Those five trends add up to a delicious mix.

Text Only
Community News Network
Featured Ads
Mineral Wells Index


Click on a photo to visit our SmugMug page

Front page
Weather Underground Radar
Twitter Updates
Follow us on twitter
AP Video
Michigan Plant's Goal: Flower and Die Raw: MH17 Passenger Remains in Kharkiv, Ukraine Raw: Israel Hits Gaza Targets, Destroys Mosques ShowBiz Minute: Hoffman, Oberst, Box Office WWII Vet Gets Medals, 70 Years Late Raw: Israel Bombs Multiple Targets in Gaza Veteran Creates Job During High Unemployment Raw: Cargo Craft Undocks From Space Station Widow: Jury Sent Big Tobacco a $23B Message New Orleans Plans to Recycle Cigarette Butts UN Security Council Calls for MH 17 Crash Probe Obama Bestows Medal of Honor on NH Veteran Texas Sending National Guard Troops to Border Hopkins to Pay $190M After Pelvic Exams Taped Foxx Cites Washington 'Circus Mirror' NASA Ceremony Honors Moon Walker Neil Armstrong
Must Read
Seasonal Content
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Stocks
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide