Rising Home Prices Affect Housing Affordability in the Second Quarter

By Rose Quint | NAHB

Solid home price appreciation more than offset a modest reduction in mortgage interest rates to push housing affordability lower in the second quarter of 2016, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

In all, 62 percent of new and existing homes sold between the beginning of April and end of June were affordable to families earning the U.S. median income of $65,700. This is down from the 65 percent of homes sold that were affordable to median-income earners in the first quarter.

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