Low mortgage rates are offsetting high prices and low inventories making it easier for first-time homebuyers to purchase a home, according to the National Association of Realtors (NAR). A NAR index of affordability shows that more first-time home buyers have the financial means to purchase a home, compared to a year ago.
The chief economist at the NAR, Lawrence Yun said, “Home prices are consistently rising at a faster pace than people’s income growth has hurt, but because of historically low rates, it providing marginal opportunities for first-time buyers.”