With mortgage rates at a three-year low and a healthy job market, housing affordability rose to its highest level in three years in the third quarter of 2019, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI).
In all, 63.6% of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $75,500. This is up from the 60.9% of homes sold in the second quarter of 2019 that were affordable to median-income earners and slightly higher than a first quarter 2019 reading of 62.6.
The national median home price remained steady at $280,000 in the third quarter, flat from the previous quarter, but significantly higher than in the first quarter ($260,000). At the same time, average mortgage rates fell from 4.07% in the second quarter to 3.73% in the third quarter, reaching a three-year low.
Visit NAHB’s Eye on Housing blog for more.