Bloomberg News

U.S. March Homebuyer Affordability Index: Summary

May 11, 2012

U.S. housing was less affordable in March than the previous month, according to the National Association of Realtors.

The composite homebuyer index fell to 204.3 in March from 207.9 the prior month. A value of 100 means that a family with the national median income has exactly enough income to qualify for a mortgage on a median-priced home. An increase in the index means that a family is more likely to be able to afford the median priced house.

Following is a table compiled from the homebuyer affordability index report:

===============================================================================
                        March     Feb.     Jan.     Dec.     Nov.     Oct.
                         2012     2012     2012     2011     2011     2011
===============================================================================
Composite Index         204.3    207.9    205.8    197.9    194.5    198.5
------------------------------------------------------------------------------
Fixed Index             201.1    200.4    201.2    192.5    190.1    194.2
===============================================================================
                        March     Feb.     Jan.     Dec.     Nov.     Oct.
                         2012     2012     2012     2011     2011     2011
===============================================================================
Median Price         $163,600 $156,100 $154,600 $162,600 $164,000 $161,100
Mortgage rate           3.96%    4.21%    4.37%    4.27%    4.33%    4.32%
Monthly P&I Payment      $622     $611     $617     $641     $652     $639
Payment % Income        12.2%    12.0%    12.1%    12.6%    12.9%    12.6%
Median Family Income  $60,999  $60,974  $60,944  $60,901  $60,876  $60,873
Qualifying Income     $29,856  $29,328  $29,616  $30,768  $31,296  $30,672
===============================================================================
NOTE: Mortgage rate is the effective rate on loans closed on
existing homes. Qualifying income is based on a 25% qualifying 
ratio for monthly housing expenses to gross monthly income
with a 20% down payment.

SOURCE: National Association of Realtors http://nar.realtor.com/research/home.htm

To contact the reporter on this story: Kristy Scheuble in Washington at kmckeaney@bloomberg.net

To contact the editor responsible for this story: Marco Babic at mbabic@bloomberg.net


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