Housing affordability improves
ICE Mortgage Technology published its October affordability report on Monday, suggesting that Americans’ ability to buy a home is at a two-and-a-half-year high.
The mortgage software firm found the average spent on a monthly housing payment in September was 30% of a household’s income. That's calculated by using the average mortgage rate, median U.S. household income and average price of a home.
The average mortgage rate used by ICE last month was 6.26%. As of Oct. 2, the average 30-year, fixed-rate mortgage rate was 6.345, according to Freddie Mac.
Spending 30% or less of monthly gross income on housing expenses is deemed affordable, according to public housing institution rules, and is commonly used as a general rule of thumb for budgeting.
The median principal and interest payments in September was $2,148, according to ICE. Monthly costs as a percentage of median income was 32% this summer and peaked in late 2023 at 35%.
Student debt forgiveness returns
Long-term student loan borrowers paying under the federal Income-Driven Repayment plan will see loan cancellations resume, according to the Department of Education.
Borrowers under the plan who make payments for 20 or 25 years can see the remainder of their loans canceled, but that was paused in July after a federal court filed a complaint against the Department of Education in February.
That lawsuit impacted other repayment programs, and the IDR plan remains the only plan eligible for loan forgiveness.
Student loans remain a large source of debt for Americans, according to federal data, with about $1.64 trillion in debt nationally. Data from research organization Education Data Initiative found 51% of renters citing student loan debt as a barrier to homeownership.
Americans view economy negatively
About 26% of U.S. adults view the economy as excellent or good, according to a September survey conducted by Pew Research Center. The other 74% described the economy as fair or poor.
The reasons for rating the economy came down to rising prices and personal expenses for those who view the economy as poor. Specifically, high inflation, the cost of living and food and grocery prices were noted.
On the positive side, most respondents who viewed the economy as good or excellent did so based on general economic growth or improvement.
The share of Americans viewing the economy as fair or poor is nearly the same as Pew’s last economic survey taken in January 2024.