Housing Affordability Falls in CA

Housing affordability in California stood at 14% in August, down from 16% in July and 18% a year earlier, according to the California Association of Realtors.The Housing Affordability Index indicates the percentage of households that can afford to buy a median-priced home in California, which cost $568,890 in August. The minimum household income needed to buy a median-priced home was $133,800, up from $110,980 a year earlier, CAR said. (The figures are based on an average effective mortgage rate of 5.87%, assuming a 20% downpayment.) CAR can be found on the Web at http://www.car.org.