Housing Affordability Inches Up in California

Housing affordability in California improved slightly in February from the January level, although it was down by six percentage points from the level recorded a year earlier, according to the California Association of Realtors.Housing affordability stood at 24% in February, up from 23% in January but down from 30% a year earlier, CAR said. The index indicates the percentage of households that can afford to buy a median-priced home in California, which cost $394,300 in February. The minimum household income needed to buy a median-priced home was $91,690, up from $77,220 a year earlier, CAR said. (The figures are based on a 30-year fixed-rate mortgage at a 5.74% interest rate, assuming a 20% downpayment.) CAR can be found on the Web at http://www.car.org.