Analytics Provider: Affordability More Stable than High

Mortgage & Real Estate

Andrew Davidson Co. Inc. said Wednesday morning its researchers have found that by some measures “affordability” has not risen since the housing bubble burst, but rather remained about the same.

The company said its research shows that when one factors in financing terms such as loan-to-value ratios and loan pricing relative to credit cost, borrowers are still putting the same fraction of their incomes into mortgages as they did when the housing bubble was at its highest.

The analytics and consulting services provider said the findings suggest that mortgage rates have less bearing on home prices than some think, and it plans to incorporate this into its home price modeling.

 

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