Report Shows the Cost of Homeownership and Rent is Out of Reach for Many in the Hudson Valley
Hudson Valley Pattern for Progress has released a report that claims the path to homeownership is shut down in the region, as median home prices exceed mortgage qualifications by more than $100,000 in all nine counties the organization
The not-for-profit blames the affordability crisis for housing in the region on stagnant wages, increasing rents and skyrocketing home prices that have stretched household budgets to their limits. Among the report’s findings include
that single adults working 40 hours per week on average renter wages cannot afford a one-bedroom apartment in any of the nine counties. Renters would need to earn anywhere from $1 to $26 more per hour to afford rent in their respective counties. Renters in
every county are considered “cost burdened.” Also, fair-market rents would need to decline anywhere from $33 to $1,343 per month to make them affordable for a person earning average renter wages across the region.
Mortgage applications decreased 3.1% from one week earlier, according to data from the Mortgage Bankers Association’s Weekly Mortgage Applications Survey for the week ended Aug. 4, 2023.
On an unadjusted basis, the index decreased 4.0% compared with the previous week. The Refinance Index decreased 4.0% from the previous week and was 37% lower than the same week one year ago. The seasonally adjusted Purchase Index
decreased 3.0% from one week earlier. The unadjusted Purchase Index decreased 3.0% compared with the previous week and was 27% lower than the same week one year ago.
Federal Reserve Hits Pause on Rate Hikes for Now
The Federal Reserve announced this afternoon that it decided to pause its policy of rate hikes to lower inflation. After hiking rates 10 times since last year, the Federal Open Market Committee decided to maintain the target range
for the federal funds rate at 5% to 5.25%.
CNBC reports that while the Fed held off a rate hike at its June meetings, the Federal Open Market Committee decision came with a projection that another two-quarter percentage
point moves are on the way before the end of the year. The Fed next meets July 25-26.
ERC Summary Appraisal Report
Existing-home sales reversed a 12-month slide in February, registering the largest monthly percentage increase since July 2020, according to the National Association of Realtors. Month-over-month sales rose in all four major U.S.
regions. All regions posted year-over-year declines, according to the report released today.
Between January 2023 and February 2023, closed regional sales transactions, including residential, condo, and co-op sales, decreased to 2,988 from 3,621, representing a 17.50% decline. Across the region, pending sales transactions
rose in a month-over-month comparison, reaching 3,974 in February, 23.30% more pending transactions than the 3,224 reported in January.
The U.S. supply of homes for sale rose at a record annual pace for the sixth month in a row, up 67.8% year-over-year in February, signaling the housing market's continued rebalancing, according to the most recent Realtor.com® Monthly
Housing Trends Report. Despite the significant increase in inventory over last year's record lows, home prices are still growing, albeit at a slower pace of 7.8% over last February, a sign of still-high hopes from home sellers entering the market.