According to the National Association of Realtors, the housingaffordability conditions have reached the highest level sincerecordkeeping began in 1970. NAR’s Housing Affordability Indexrose to a record high 206.1 in January, based on the relationshipbetween median home price, median family income and averagemortgage interest rate. An index of 100 is defined as the pointwhere a median-income household has exactly enough income toqualify for the purchase of a median-priced existingsingle-family home, assuming a 20 percent down payment and 25percent of gross income devoted to mortgage principal andinterest payments. “This is the first time the housingaffordability index has broken the two hundred mark, meaning thetypical family has roughly double the income needed to purchase amedian-priced home,” he said. “For buyers who can qualify fora mortgage, now is a very good time to become a homeowner,”said NAR President Moe Veissi.
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