The National Association of Realtors reported that the Composite Index of Home Affordability declined 8.8% y/y during June to 134.8, the lowest level since August 2008. The index was 37.3% below its peak in January 2013.

Together, principal & interest payments rose to $1,164 or 18.5% of median income, the highest percentage since August 2008. That percentage compared to a low of 11.6% early in 2013. Higher prices helped reduced affordability. The median sales price of an existing home strengthened 5.2% y/y to $279,300. The price rise was accompanied by a higher average mortgage rate of 4.74%, up from a 3.43% low in December 2012.  Growth in median family income slowed to 2.9% y/y in June from 3.3% last year and 4.1% during all of 2016.

The Housing Affordability Index equals 100 when median family income qualifies for an 80% mortgage on a median priced existing single-family home. A rising index indicates more buyers can afford to enter the home-buying market. Data on Home Affordability can be found in Haver's REALTOR database. Interest rate data can be found in the WEEKLY and DAILY databases.