Incomes not keeping up with rebounding home prices

Incomes not keeping up with rebounding home prices

Portland homebuyers may be paying smaller monthly payments than in the past, but they're buying higher cost homes relative to their income, according to Zillow.

The website warned on Wednesday the sharper than expected rebound in home prices may not bode well for long-term affordability because gains in income haven't kept up.

Historically low interest rates mean Americans are making monthly payments nearly 37 percent lower than before the bubble. But homes cost 14.5 percent more than historic norms, meaning that the affordability could dry up when rates rise.

Read more at OregonLive.com.

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