The National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index (HOI) reports that 66.5 percent of new and existing homes sold between January and March this year were affordable to families earning the median income of $65,800, the point at which half U. S. incomes are higher and half are lower.

While mortgage interest rates fell from 4.29 percent in the fourth quarter to 4.03 percent in the first quarter, the national median home price dropped $5,000 to $210,000 during the same period, according to consumeraffairs.

Meanwhile, Fannie Mae and Freddie Mac are offering mortgages with down payments as low as three percent, which allows creditworthy borrowers who do not have a large down payment access to homeownership. MHProNews understands the Federal Reserve intends to raise interest rates at some point this year, which will raise the cost of buying a home.

“Home ownership builds stronger communities, provides a solid foundation for family and personal achievement and improves the quality of life for millions of people,” said Tom Woods, NAHB chairman. ##

(Image credit: CNNMoney/Joshua Scott)

Article submitted by Matthew J. Silver to Daily Business News-MHProNews.