Economists' Outlook

Housing stats and analysis from NAR's research experts.

June 2017 Housing Affordability Index

At the national level, housing affordability is down from last month and down from a year ago. Mortgage rates increased to 4.14% this June, up compared to 3.84% a year ago.

  • Housing affordability declined from a year ago in June moving the index down 7.3% from 155.8 to 144.5. The median sales price for a single family home sold in June in the US was $266,200, up 6.6% from a year ago.
  • Nationally, mortgage rates were up 30 basis points from one year ago (one percentage point equals 100 basis points) while median family incomes rose 2.4%.
  • Regionally, the Midwest recorded the biggest increase in price at 7.8%. The West had an increase of 7.5% while the South had a gain of 6.3%. The Northeast had the smallest incline in price of 3.5%.
  • Regionally, all four regions saw a decline in affordability from a year ago. The West had the biggest decline of 8.8%. The South followed with a decline of 8.4%. The Midwest had a decline of 8.1% while the Northeast had the smallest decline of 3.7%.
  • On a monthly basis, affordability is also down from last month in all four regions. The Midwest had the biggest decline of 6.6% followed by the South, which had a decline of 6.1%. The Northeast had a drop of 4.9%. The West had the smallest decline in affordability of 3.6%.
  • Despite month-to-month changes, the most affordable region was the Midwest, with an index value of 177.3.  The least affordable region remained the West where the index was 105.3. In the West region properties were moving at a fast pace. For comparison, the index was 144.5 in the South, and 150.5 in the Northeast.
  • Mortgage applications are currently up. There was plenty of housing demand based on the pace of sales. Homeowners appear to be staying in their homes longer slowing turnover rates. Prices remain too high to compete with income growth. New home sales are lacking in production, which continues to put the burden on inventory levels.
  • What does housing affordability look like in your market? View the full data release here.
  • The Housing Affordability Index calculation assumes a 20% down payment and a 25% qualifying ratio (principal and interest payment to income). See further details on the methodology and assumptions behind the calculation here.

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