Dive Brief:
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The national median home price in the first quarter is $210,000, down $5,000 from $215,000 in the fourth quarter, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index.
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The average mortgage interest dipped from 4.29% in Q4 to 4.03% in Q1.
- Those factors led to 66.5% of new and existing homes being affordable for families making an income of $65,800, the U.S. median.
Dive Insight:
The San Francisco area remains the least affordable market. Syracuse, NY, and Sandusky, OH, are the most affordable.
Homes are becoming increasingly affordable for families earning the median income. In the fourth quarter of 2014, the HOI index was 62.8%. In the third quarter, only 61.8% — down from 62.6% — of homes were affordable to that income group.
The dip in mortgage interest rates had a major role in the increase in affordability. High home prices in major metro areas are still cited as holding back the housing market's rebound. If this trend of affordability continues, it could be good news for buyers and the industry as a whole in the coming months.
