Rising home prices push affordability slightly lower in second quarter

Strengthening house prices in metros across the country contributed to slightly lower housing affordability in the second quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), released today.

The latest HOI data reveal that 73.8 percent of all new and existing homes sold in the second quarter were affordable to families earning the national median income of $65,000. This is down from a record high 77.5 percent of homes that were affordable to median-income earners as of the first quarter, and is largely attributable to rising prices in metros across the country. A full 92 percent of metros covered in the latest HOI saw their median home prices rise between the first and second quarter.