Housing Affordability Continued to Decline in Q3

According to the latest National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI), just 42% of new and existing homes sold in Q3 were affordable to families earning the US median income of $90,000. This marks the second consecutive record low for housing affordability in more than a decade, just behind the previous record high of 42.8% set in Q2.

The HOI reports that the national median home price in Q3 fell to $380,000. Nevertheless, it is still the second-highest median price in the series history. Only Q2’s $390,000 was greater. At the same time, average mortgage rates reached a series high of 5.72% in Q3, up from 5.33% in Q2.