WASHINGTON — An index measuring a typical family's ability to buy a home climbed to its highest level in more than six years, a real estate trade group said Monday.
The National Assn. of Realtors said its housing affordability index jumped to 94.8% in August, the highest level since April, 1979.
That meant that a family earning the median income of $27,438 annually had 94.8% of the income needed to qualify for a mortgage on a typical house selling for $77,100.
The improvement in the August index, which was up a sharp 1.8 percentage points from July, came from further declines in mortgage interest rates and a $300 decline in the median price of an existing single-family home.