At the national level, housing affordability is down for the month of March, as the median price for a single family home in the U.S. increased due to a continued lack of housing inventory. The median single-family home price is $198,200, up 7.4 % from a year ago.
Mortgage rates are up 72 basis points (one percentage point equals 100 basis points) from last year; nationally, affordability is down from 195.3 in March 2013 to 170.3 in March 2014.
Income levels are up 2.1% from last year. An increase in inventory along with price stabilization will improve affordability.
From one year ago, affordability is down in all regions. The West saw the biggest decline in affordability as a result of having the largest price gain at 12.5%.
Interest rates are the lowest they have been since November of 2013. This break in increases should help potential homebuyers.
What does housing affordability look like in your market? View the full data release here.
The Housing Affordability Index calculation assumes a 20 percent down payment and a 25 percent qualifying ratio (principle and interest payment to income). See further details on the methodology and assumptions behind the calculation here.