Housing Affordability Continues to Slide in Third Quarter
Strengthening house prices and increased interest rates in metros across the country contributed to lower housing affordability in the third quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).
In all, 64.5% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $64,400. This is down from the 69.3% of homes sold that were affordable to median-income earners in the second quarter, and the biggest HOI decline since the second quarter of 2004.