The Housing Opportunity Index (HOI) rose to 65.5% in the first quarter of 2014, from 64.7% in the last quarter of 2013. The index monitors the percentage of homes that were bought in a certain period with the average household income for that point in time. It signifies that almost two thirds of the sold houses were deemed affordable for American families.
The rising affordability of homes is combined with stabilizing mortgage rates in the first quarter of the year with an increase from 4.54 to 4.57%.
The areas with most affordable homes were Syracuse, Buffalo-Niagara Falls, and Youngstown-Warren-Boardman. San Francisco-San Mateo-Redwood City is the area with the least affordable homes, and it’s been in this position for a year and a half now. In general, the areas with least affordable homes are mostly in California.