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Rates, Declining Home Prices Improved Affordability in Q4
Thursday, February 19, 2015
Housing affordability grew slightly in the fourth quarter of
2014 according to the National Association of Home Builders (NAHB)/Wells Fargo
Housing Opportunity Index (HOI) released today. NAHB said that the increase was due to interest
rates which declined from 4.35 percent to 4.29 percent during the quarter and
home prices which decreased in some markets and brought the national median
down to $215,000 from the third quarter median of $220,800.
Nationwide the HOI shows that 62.8 percent of new and
existing homes sold during the fourth quarter were affordable to families
earning the U.S. median income of $63,900.
In the third quarter 61.8 percent of homes sold met that affordability
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