Local housing affordability rate lags

Home affordability in San Diego County continues to lag much of the state, according to new statistics released this week by the California Association of Realtors trade group.

Roughly 26 percent of San Diegans could afford a median-priced single family home in the third quarter of 2016, unchanged from the last reporting period but up from 24 percent in 2015. Statewide, affordability rates are closer to 31 percent.

The area's median-priced home is currently pegged at $589,260. That would require a household income exceeding $114,000 and cash available for a down payment of about $118,000 in order to meet affordability standards specifying buyers should spend at most 30 percent of pre-tax income on monthly payments.

While already low, affordable-housing stats have been buoyed by mortgage interest rates hovering near record lows. In recent days, however, federal bond rates have spiked as investors fear inflation and increased federal deficits under the coming administration of president-elect Donald Trump. Mortgage rates, closely tied to Treasury bond rates, have jumped 15 percent since Tuesday — if the rise continues, expect an even bleaker picture when year-end reports are released in January.