According to the St Louis Federal Reserve Bank’s data from the National Association of Realtors the Housing Affordability Index is at an all time high. The index tracks the “affordability” of housing by degree a typical family can afford the monthly mortgage payment of a typical home.
Title: Housing Affordability Index (Fixed) Series ID: FIXHAI Source: National Association of Realtors Release: Monthly Housing Affordability Index Seasonal Adjustment: Not Seasonally Adjusted Frequency: Monthly Units: Index Date Range: 1981-01-01 to 2011-10-01 Last Updated: 2011-12-06 9:01 AM CST Notes: Measures the degree to which a typical family can afford the monthly mortgage payments on a typical home. Value of 100 means that a family with the median income has exactly enough income to qualify for a mortgage on a median-priced home. An index above 100 signifies that family earning the median income has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.
The above chart is the national stats, below is our local market Housing Affordability Index. This is as of Nov 1, 2011 – we should be getting an update of November’s Affordability Index in a few days. These charts do show us that from an “affordability” stand point, there hasn’t been any better time to buy a home. (to clarify: the data above only goes back to 1980 – so maybe I should say there hasn’t been in a better time in the last 30 years to buy a home.)
- Housing Affordability Hovers Near Record Levels (callcoco.wordpress.com)
- Housing affordability improves (propellresearch.wordpress.com)
- Mortgage rates dip below 4% – again (housingwire.com)