At the national level, housing affordability is down due to higher mortgage rates and even higher home prices. What is affordability like in your market?
- Housing affordability is down for the month of April in the U.S. as prices reached their highest point since August of 2008, and their highest April since that same year. Mortgage rates ticked up another notch as they have done each month since their December 2012 bottom, adding more downward pressure on affordability.
- While mortgage rates are still lower than a year ago and incomes are higher, home prices increased again keeping affordability down.
- By region, affordability is down from one month ago in all regions. From one year ago, affordability is down in all regions except the Northeast. The West had the biggest drop in affordability because it had the biggest price gain, at 17.5%.
- In all regions, the median income continues to rise from a year ago and mortgage rates are also down, allowing affordability to remain historically favorable.
- 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.