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Housing recovery?

The looming threat to the housing recovery - Brett Arends's ROI - MarketWatch: "In January, an American family who wanted to buy a median home would have paid $170,600, according to the National Association of Realtors. (There are seasonal factors making winter purchases cheaper). Assume they borrowed 80% of the price at prevailing mortgage rates then, which according to the Fed were 3.4%, they would have faced an annual interest cost of about $4,600. Today, a family hoping to buy a median home will pay $208,000, and 4.6% interest. Annual interest on an 80% mortgage: $7,600. In other words, the effective cost of buying the median home in the U.S., when measured in terms of the actual cost of the mortgage per month or year, has risen by more than 50% in just a few months." (read more at link above)

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