Housing Affordability Hits Record High

Housing affordability conditions have reached the highest level since recordkeeping began in 1970, according to the National Association of Realtors®. NAR’s Housing Affordability Index rose to a record high 206.1 in January, based on the relationship between median home price, median family income and average mortgage interest rate. The higher the index, the greater the household purchasing power. An index of 100 is defined as the point where a median-income household has exactly enough income to qualify for the purchase of a median-priced existing single-family homeThe projections for the affordability index for all of 2012 will be at an annual high, with little movement in mortgage interest rates or home prices during the year. Read the full story at Realor.org: Click Here