WASHINGTON – Indianapolis, IN, is still considered the nation’s most affordable major U.S. housing market for a ninth consecutive time in the third quarter of 2007, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). Additionally, nationwide housing affordability rose on a year-over-year basis, but was down slightly for the quarter due to increased mortgage rates.
“Today’s HOI reading indicates that 42% of all new and existing homes that were sold during the third quarter were affordable to families earning the national median income of $59,000,” said NAHB President Brian Catalde, a home builder from El Segundo, CA. “This reflects a slight improvement in affordability from a year ago, when only 40.4% of homes were within reach of median income-earners, but is just below the 43.1% of homes that were affordable to median income-earners in this year’s second quarter.”
The index indicates that the national weighted interest rate on fixed and adjustable-rate mortgages was 6.73% in the third quarter, compared to 6.44% in the second quarter.
In Indianapolis, 87.5% of home sold in the third quarter were affordable to families earning the area’s median household income of $63,800. Also high on the list of affordable major housing areas were: Detroit-Livonia-Dearborn, MI; Youngstown-Warren-Boardman, OH-PA; Scranton-Wilkes-Barre, PA; and Grand Rapids-Wyoming, MI, in that order.
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