Housing Affordability Continued to Improve in August

At the national level, housing affordability increased for the second consecutive month in August compared to the previous month according to National Association of Realtors Housing Affordability Index. Compared to the prior month, affordability improved as the monthly mortgage payment fell by 1.1% while the median family income fell modestly by 0.7%.

Compared to one year ago, affordability declined in August as the median family income rose by 3.9% while the monthly mortgage payment increased 13.9%. The effective 30-year fixed mortgage rate was 2.89% this August compared to 3.00% one year ago, and the median existing-home sales price rose 15.6% from one year ago.