By Jann Swanson | Mortgage News Daily
Rising wages helped to boost housing affordability in the first quarter, even as interest rates rose. The National Association of Home Builders (NAHB) said its NAHB/Wells Fargo Housing Opportunity Index indicates that 60.3 percent of new and existing homes that sold nationwide between the beginning of January and end of March were affordable to families earning the U.S. median income of $68,000. In the fourth quarter of 2016 59.9 percent of U.S. homes met that criteria.
NAHB said moderating home prices also played a role in the increased affordability. The national median home price fell to $245,000 compared to $250,000 in the final quarter of 2016, helping to offset the near half-point increase in mortgage rates. The average rate increased from 3.84 percent in the fourth quarter to 4.33 percent in the first quarter.
