The record-setting housing market is drawing strength from high levels of affordability, according to the Winter edition of The Housing and Mortgage Market Review (HaMMR), released today by Arch Mortgage Insurance Company (Arch MI), a leading provider of mortgage insurance.
HaMMR is Arch MI’s quarterly report that presents and analyzes key economic data, provides housing sector forecasts and information on long-term trends. Each issue of the Review features Arch MI’s proprietary MSA-Level and State-Level Risk Indexes, which estimate the probability house prices will be lower in a Metropolitan Statistical Area (MSA) or state within two years.
HaMMR also names the nation’s Five Most Affordable Cities with strong job growth and focuses on likely moves by Washington, D.C., policymakers following the inauguration of President-elect Joe Biden.
While affordability remains high nationally, there are several regions of the country where housing costs are higher and this HaMMR delves into the impact of a slower pace of construction in those more expensive areas.
“Home prices have been rising steadily, but historically low mortgage rates are contributing to increased affordability for median-income homebuyers in large parts of the country,” said Rob Hardie, Senior Vice President and head of Data Analytics, Arch Capital Services LLC. “Another factor is that many potential homebuyers are working at home and are increasingly focused on larger properties in suburbs, exurbs and rural areas where affordability is higher. We also look at how the ability to more easily increase housing stock in a given area impacts affordability.”
