Home price and mortgage rate increases resulted in a Housing Affordability Index rating of 62.2 percent in the third quarter, a decrease from the previous quarter, when 63.2 percent of all homes were affordable to families making the U.S. median income of $65,800, according to the National Association of Home Builders.
The “slight” decline means affordability remains good in general, said NAHB Chief Economist David Crowe in a statement. "With mortgage rates near historic lows and home prices advancing at a modest pace, this is an excellent time to buy,” he said.
The most affordable housing market was Syracuse, N.Y., where 91.7 percent of all new and existing homes sold in the third quarter were affordable to families making the area’s median income of $68,500.
San Francisco-San Mateo-Redwood City, Calif., was the country’s least affordable major housing market for the 12th consecutive quarter. Only 10.5 percent of all homes sold in the third quarter were affordable to families earning the area’s median income of $103,400.