Articles for Financial Advisors

U.S. Banking and Housing

U.S. Banking and Housing

The number of bank closed by regulators due to an inability to meet their financial obligations has fallen steadily since 2009: 25 (2008), 140 (2009), 157 (2010), 92 (2011), 51 (2012), 16 (June 2013). Housing prices remain affordable, as shown by the Housing Affordability Index (source: National Association of Realtors). The Index means a family with a median annual income has enough money to qualify for a mortgage on a median-priced home (a 20% down payment).

For example, an index reading of 100 means the family has exactly enough money to qualify for a down payment; an index reading of 120 means the same family will need an additional 20% more to qualify for a loan. The index is calculated using a composite of fixed and adjustable-rate mortgages.

Housing Affordability Index

Year

Index

2003

138

2005

122

2007

120

2009

177

2011

180

2013

185

 

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