Tag Archives: salary

Here’s why the Fannie Mae Home Purchase Sentiment Index has seen a recent spike, and what this means for the housing market.

The House Financial Services Committee has announced that proposed legislation to cap the salaries of CEOs at Fannie Mae and Freddie Mac has advanced to the markup phase, which will take place in the Committee on Tuesday, July 28.

On a national scale, with 20 percent down, a buyer would need to earn a salary of $48,603.82 to afford the median-priced home. Of course it is possible to buy a home with less than a 20 percent down payment, but a lower down payment means the buyer’s salary must be higher to afford the same home. In the national example above, a purchase of a median-priced home with only 10 percent down and including the cost of PMI increases the income needed to $56,140.44, an increase of $7,500.