Housing more affordable according to Chicago Fed report
Chicago Federal Reserve senior economist Richard Rosen has suggested that with rising incomes and low interest rates housing is more affordable than it was ten years ago.
Rosen has created a “mortgage servicing index” that correlates the ratio of a mortgage payment for an existing single-family home at the national median price to the median household income. Using this index, consumers paid 20 percent of their household income for a home in the mid 80’s with just 15.8 percent in 2004.
Bubble? Housing more affordable, study says [Chicago Tribune (06/01/05); Umberger, Mary; Fitzgerald, Alison]
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