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Home prices are not the only determining factor when looking at affordable living options. In fact, markets with cheapest homes are not necessarily always the most affordable. Zillow research released Thursday showed lower priced homes are not always the most attractive and budget-friendly option for those in the U.S. workforce.
Although homes cost less in the middle of the country, wages are also lower. Consumers that live here put a smaller percentage of their monthly income toward housing, further proving that cheap markets are always the most affordable. Teachers that are budgeting to purchase a home in the future will have a harder time finding a home in Salt Lake City, Utah or Portland, Oregon than in some parts of California.
The Consumer Financial Protection Bureau issued a bulletin to the mortgage industry Thursday concerning marketing services agreements, finding these agreements undermine consumer protection against kickbacks. The bulletin reminds the industry that kickbacks and referral fees under the Real Estate Settlement Procedures Act are prohibited and highlights the risks surrounding MSAs. RESPA is intended to eliminate kickbacks or referral fees that tend to increase unnecessarily the costs of settlement services.
