Haver Analytics
Haver Analytics
USA
| Jan 14 2022

U.S. Housing Affordability Decreases Again in November

Summary
  • Mortgage payments rose again due to higher home prices.
  • Family income edged up 0.2% in November.
  • Mortgage rates were unchanged in latest month.

The National Association of Realtors' Fixed Rate Mortgage Housing Affordability Index fell 0.7% in November (-12.4% y/y) to 147.8; that followed a decrease of 1.9% in October, revised from 2.3% reported initially. Affordability has fallen 21.3% since its recent high of 187.8 in January 2021. The Housing Affordability Index equals 100 when median family income equals the amount required for an 80% mortgage on a median priced existing single-family home.

In November, the median sales price of a home rose 0.9% (14.9% y/y) to $362,600, following a 0.4% increase in October to $359,800. Mortgage rates were unchanged in November from October at 3.12%, according to this National Association of Realtors rate measure. The resulting monthly mortgage payment for a house at that price and interest rate was $1,242, up 0.9% from the payment calculated for October of $1,231 for a home purchased at October's price and designated mortgage rate.

Median family income in November was $88,137, up 0.2% (+4.7% y/y) from October's income of $87,941, which was up 0.7% in the month. Consequently, the standard mortgage payment as a percent of income was 16.9%, up from 16.8% in October and the highest since June's 17.1%.

Data on Housing Affordability can be found in Haver's REALTOR database. Median home sale prices are also located in USECON. Higher frequency interest rate data can be found in SURVEYW, WEEKLY, and DAILY.

  • Carol Stone, CBE came to Haver Analytics in 2003 following more than 35 years as a financial market economist at major Wall Street financial institutions, most especially Merrill Lynch and Nomura Securities. She has broad experience in analysis and forecasting of flow-of-funds accounts, the federal budget and Federal Reserve operations. At Nomura Securites, among other duties, she developed various indicator forecasting tools and edited a daily global publication produced in London and New York for readers in Tokyo.   At Haver Analytics, Carol is a member of the Research Department, aiding database managers with research and documentation efforts, as well as posting commentary on select economic reports. In addition, she conducts Ways-of-the-World, a blog on economic issues for an Episcopal-Church-affiliated website, The Geranium Farm.   During her career, Carol served as an officer of the Money Marketeers and the Downtown Economists Club. She has a PhD from NYU's Stern School of Business. She lives in Brooklyn, New York, and has a weekend home on Long Island.

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