Home affordability fell to 3-decade low, but there's a silver lining

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The National Association of Realtors defines a qualifying income, or the income necessary to afford a mortgage, as being one that allows a homeowner to put no more than 25% of family income toward the monthly payment for a 30-year fixed mortgage loan, including a 20% down payment. “The fast rising home prices and the high mortgage rate cramped housing affordability in June to its worst in over 30 years," Lawrence Yun, chief economist at the National Association of Realtors, said in a statement."More supply is clearly needed to moderate home price growth to give income time to catch up."

The data suggest the Midwest is the most affordable place to buy a home. Median family income there as of June is $90,650, according to the NAR, while the qualifying income determining whether a family can afford a mortgage is $68,496.

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