In Past 15 Years, ‘Home-Buying Power’ Grew 44%

Falling mortgage rates have increased the purchasing power of home buyers by 44 percent since mid-2001, according to analysis by John Burns Real Estate Consulting.

The 30-year fixed-rate mortgage plunged from 7.2 percent in June 2001 to 3.9 percent today – which has allowed home buyers to qualify for a 44 percent larger mortgage just due to falling mortgage rates, according to the analysis.

Still, home price appreciation has been outpacing wage growth in 28 of the 30 largest housing markets in the country, the analysis shows.

An interesting data chart highlights the nine markets where appreciation has exceeded income growth at analysis source: John Burns Real Estate Consulting