The National Association of Realtors reported that its Composite Index of Home Affordability declined 2.5% during March (+0.1% y/y). Affordability stood 29.0% below the peak level during January 2013.

Together, principal & interest payments of $1,060 rose m/m to 16.4% of median income, but the percentage was the same as it was twelve months earlier. This percentage compares to a high of 18.2% last June, but was above the low of 11.6% early in 2013. The median sales price of an existing home rose 3.8% y/y to $261,100. The average mortgage rate slipped to 4.51% in March, but remained up from a 3.43% low in December 2012. Higher prices held back the affordability increase during the past year. Growth in median family income slowed to 2.6% y/y in March from 3.4% during all of last year and roughly 4.0% in the prior two years.

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.