The National Association of Realtors reported that its Fixed Rate Mortgage Housing Affordability Index fell 1.2% m/m (+10.4% y/y) to 161.8 in December from 163.7 in November. It was the lowest level of affordability since August and remained well below the all-time high of 213.3 reached in January 2013.

In December, monthly principal and interest payments increased to $1,030 from $1,016 in November.

and rose to 15.5% of income. The median sales price increased 8.0% y/y to $277,000. Median family income continued to increase, rising to $79,970, up 3.3% y/y. The effective mortgage interest rate edged up three basis points to 3.78% in December, but remained below the 4.99% recorded in November of 2018.

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 an increasing number of buyers can qualify for a mortgage to purchase the median-priced home. Data on Home Affordability can be found in Haver's REALTOR database. Interest rate data can be found in the WEEKLY and DAILY databases.