U.S. Housing Affordability Improves to 102.3 as Median Home Prices Hit Record $440,600
Updated
Updated · Realtor.com News · Jul 17
U.S. Housing Affordability Improves to 102.3 as Median Home Prices Hit Record $440,600
3 articles · Updated · Realtor.com News · Jul 17
Summary
June's National Association of Realtors affordability index rose to 102.3 from 95.5 a year earlier, meaning a median-income family could again qualify for a mortgage on a median-priced home.
3.5% wage growth outpaced the 1.8% annual increase in existing-home prices, while the average 30-year fixed mortgage rate fell to 6.49% from 6.82% a year earlier.
All four regions posted affordability gains, led by the West at 8.9% and the South at 8.3%; the Northeast improved just 4.5% as 3.9% price growth still exceeded 3.2% wage growth.
The index has slipped for six straight months from January's 116.5, showing buyers still face pressure even with year-over-year improvement and slower price growth.
Economists say further gains depend on mortgage rates and more housing supply, with Realtor.com projecting rates near 6.3% by year-end but warning geopolitical risks could disrupt that path.