Of the new and existing homes sold between the beginning of January and end of March, 66.5 percent were affordable to families earning the U.S. median income of $65,800, an increase from 62.8 percent in the fourth quarter, according to the National Association of Home Builders.
The national median home price decreased from $215,000 in the fourth quarter to $210,000 in the first quarter, and average mortgage interest declined from 4.29 percent to 4.03 percent. In all, 85 percent of the metropolitan areas measured experienced an increase in affordability, said NAHB Chief Economist David Crowe.
"The past two quarters have seen an improvement in affordability as mortgage rates remain low," Crowe said in a statement. "Along with favorable home prices and pent-up demand, this broad improvement should help encourage more buyers to enter the marketplace."
Syracuse, N.Y., for the second straight quarter, was the nation’s most affordable major housing market. Families earning the area’s median income of $68,500 could purchase 95.6 percent of all new and existing homes.
The least affordable major metro was Santa Cruz-Watsonville, Calif., where 21.6 percent of homes were affordable to families earning $87,000.
