Rising home prices, mortgage rates leave many unable to buy

Just 44% of California residents could afford the median-priced home in the first quarter, a real estate group’s index says.

The chance of finding affordable housing in California is dwindling as median home prices and interests rates continue to rise—fast.

According to a study published by the California Assn. of realtors, only 44% of residents could afford the average priced home in California. This is compared to 56% during the same period as last year.

Many would-be first time buyers are having their home owning dreams crushed, especially considering this time last year home affordability hit its highest level since the California Assn. or Realtors began publishing affordability statistics in 1988.

The percentage is expected to decline even further as home prices and interest rates continue to sharply rise. In June, the average home price hovered around $428,510, a big jump from the $378,960 average in March. According to Freddie Mac, interest rates rose from 4.37% in July and from 3.41% in March.

Read the full article at Los Angeles Times – http://lat.ms/16x1lQj