A slight increase in nationwide housing affordability in the fourth quarter of 2014 was due to marginally lower interest rates and home prices in markets across the country, according to the National Association of Home Builders Housing Opportunity Index.
Overall, 62.8 percent of new and existing homes sold from October to December were affordable to families making the U.S. median income of $63,900. This is an increase from the 61.8 percent of homes sold that were affordable in the third quarter.
The national median home price declined from $220,800 in the third quarter to $215,000 in the fourth quarter, while average mortgage interest rates decreased from 4.35 percent to 4.29 percent during the same period.
"Affordable home prices, historically low mortgage rates and an improving job market will release pent-up demand and help keep the housing market moving forward in the year ahead," said NAHB Chief Economist David Crowe in a statement.
