At the national level, housing affordability is still at a near-record level thanks to lower mortgage rates and in spite of higher home prices. What is affordability like in your market?
- Housing affordability is down for the month of February in the United States, as rising incomes were not enough to completely offset higher mortgage rates and home prices from January to February. In spite of the slight decrease, affordability remains at a near-record level.
- In fact, after incorporating revised price data, last month was the highest affordability index on record; data goes back to January 1971.
- From one year ago, affordability is down slightly as lower mortgage rates and higher incomes have not completely offset double-digit home price gains.
- By region, affordability is up slightly from one month ago in the West, down in the Northeast and South. There was no change in the Midwest. From one year ago, affordability is higher in all regions except the West, where price gains have had the most dramatic effect.
- In the Midwest and South the median income family earns double what is needed to purchase the median priced home, so affordability remains high.
- What does housing affordability look like in your market?
- Check out the full data release here.
- The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principle and interest payment to income). See further details on the methodology and assumptions behind the calculation here.
