Home Affordability at Twenty Year High

Washington, DC, Feb. 20, 2012 -- Homes are now more affordable than than at any time in the last 20 years.

Declining home prices and record low mortgage rates are the driving factors.

The National Association of Home Builders/Wells Fargo Housing Opportunity Index indicates that 75.9% of all new and existing homes sold in the fourth quarter last year could have been easily afforded by families earning the national median income of $64,200.

That was the highest percentage in the 20-year history of the index, and a significant increase from just three months earlier when 72.9% of all homes sold were considered affordable.

However, potential home buyers are still struggling to land a mortgage, according to NAHB.

Interest rates for 30-year loans averaged a record low of 3.87% last week, according to Freddie Mac.