Wednesday, March 26, 2008

Housing affordability Index improves


The Housing Affordability Index has gone from 103.6 in July 2007 to 130.3 in January 2008, and will maybe go even higher in February, given the 3% drop in median home price from $205,000 in January to $198,700 in February. A composite HAI of 130.3 means that a family earning the median family income had 130.3% of the income necessary to qualify for a conventional loan covering 80% of a median-priced existing single-family home in January 2007.