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by Tom Moeller February 14, 2020
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.
| Housing Affordability | Dec | Nov | Oct | Dec Y/Y | 2019 | 2018 | 2017 |
|---|---|---|---|---|---|---|---|
| Fixed Rate Housing Affordability Index | 161.8 | 163.7 | 163.3 | 10.4% | 157.4 | 147.8 | 159.1 |
| Payment as a Percent of Income | 15.5 | 15.3 | 15.3 | 17.1 | 15.9 | 16.9 | 15.7 |
| Principal and Interest Payment | $1,030 | $1,016 | $1,013 | 8.0% | $1.044 | $1,079 | $967 |
| Median Sales Price (Existing Single Family Home) | $277,000 | $274,100 | $273,800 | $256,400 | $272,333 | $259,458 | $247,508 |
| Monthly Fixed Mortgage Rate | 3.78% | 3.75% | 3.74% | 4.99% | 4.04% | 4.72% | 4.20% |
| Median Family Income | $79,970 | $79,824 | $79,425 | 3.3% | 3.2% | $3.4% | 4.0% |
