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NAR Reports

Housing affordability conditions improve marginally

(REAL ESTATE NEWS) In the August edition of the Affordability Index, NAR has some welcome and promising news regarding affordability in America.

affordability home sales

Housing affordability up for second consecutive month

NAR has released an encouraging index of facts and figures regarding housing affordability. In the August Housing Affordability Index they state that at the national level, housing affordability is up from a year ago for the second consecutive month.

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The median sales price for a single family home was $242,200, up approximately 5.3 percent from a year ago. The NAR does qualify that their Housing Affordability Index calculations assumes a 20 percent down payment and a 25 percent qualifying ration (principal and interest payment to income).

Regional performance varied

According to the August Index, despite the month-to-month changes, the most affordable region in which to live remains the Midwest, where the affordability index is 204. All regions improved in August.

regional-affordability
The least affordable region, unfortunately, is the West where the index is currently 119.2. Hanging in the middle is the South at 166 and the Northeast at 165.1.

Mortgage applications are up, rates remain down

Nationally, mortgage rates are also down by approximately 41 basis points from one year ago. Mortgage applications are currently up and rates remain historically low according to the NAR, despite income levels rising a modest 2.4. percent.

Additionally, purchase mortgage applications are also up and rates are remaining historically low. The NAR is cautious to state however, that they expect these rates to begin to increase at any time.

To see what housing affordability looks like in your market and learn more about the methodology and assumptions behind the facts and figures, you can view the NAR’s full data release here.

Jennifer Walpole is a Senior Staff Writer at The American Genius and holds a Master's degree in English from the University of Oklahoma. She is a science fiction fanatic and enjoys writing way more than she should. She dreams of being a screenwriter and seeing her work on the big screen in Hollywood one day.

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