Housing Affordability Index and mortgage rates via St. Louis Fed.
Affordability in June Was the Worst Since 1989
The Wall Street Journal reports Affordability in June Was the Worst Since 1989
It was more expensive to buy a U.S. home in June than it has been for any month in more than three decades, as record-high home prices collided with a surge in mortgage rates.
The National Association of Realtors' housing-affordability index, which factors in family incomes, mortgage rates and the sales price for existing single-family homes, fell to 98.5 in June, the association said Friday. That marked the lowest level since June 1989, when the index stood at 98.3.
Housing Affordability Index
The NAR's Housing Affordability Index is based on median income data current through 2017, projected forward.
Only 13 months of data is available on Fred, the St. Louis Fed repository.
Affordability is based on whether the median family earns enough income to qualify for a 30-year fixed mortgage loan on the median single-family home without spending more than 25% of the income on payment for principal and interest.
An index 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 means a median family has more than enough income to qualify for a mortgage loan on a median-priced home, assuming a 20 percent down payment.