Recent home price reports show housing values are rising across the country. But, though price increases are good news for the economy and homeownership, they will typically have a negative affect on affordability conditions. According to the National Association of Realtors Housing Affordability Index, however, housing affordability is better this year than it was in 2011. The Index, which gauges how affordable the median-priced home is based on current family income and mortgage rate data, finds that homes are actually more affordable than they were last year, despite the price increases. Due to gains in family income and mortgage rates hovering near record lows, the median income family now earns 82 percent more than they’d need to afford the typical previously-owned home. More here.
