NAR: Housing Affordability Improves

The typical American family's ability to purchase a median-priced home increased in the first quarter as a result of rising family income, according to the National Association of Realtors.The NAR's composite Housing Affordability Index stood at 132.9, up from 131.8 in the fourth quarter but down from 141.2 a year earlier. The latest index number means that the typical household in the United States had 132.9% of the income needed to purchase a home at the first-quarter median existing-home price, which was $188,800, the association said. "Rising family income offset higher mortgage interest rates and home prices in the first quarter, boosting the overall homebuying power of the typical family," said NAR chief economist David Lereah. "Generally, home prices have been rising faster than income over the last four years, but the biggest factor -- the monthly mortgage payment -- remains historically low." The NAR can be found online at http://realtor.org.