Housing Affordability Conditions Take a Hit in March

The income required to afford a mortgage, or the qualifying income, is the income needed so that mortgage payments on a 30-year fixed mortgage loan with a 20% down payment account for 25% of family income.2 The most affordable region was the Midwest, with an index value of 170.6 (median family income of $88,115 with a qualifying income of $51,648). The South was the second most affordable region with an index of 124.6 (median family income of $81,761 and the qualifying income of $65,616). The annual mortgage payment as a percentage of income increased to 20.2% this March from 14.3% a year ago due to higher home prices compared to declines in median family incomes.

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