July 2026 data shows the Housing Affordability Index at 103.3, with $109,796 needed to buy the median U.S. home—here’s what that means for buyers.
The Housing Affordability Index (HAI) published by the National Association of Realtors (NAR) reached 103.3 in July 2026, up from 101.8 in June but still below the 112.0 recorded in March. An index above 100 indicates that a median-income household has sufficient income to qualify for a mortgage on a median-priced home, assuming prevailing interest rates and a 20 percent down payment. The July reading therefore signals a modest improvement in purchasing power, yet affordability remains tighter than it was earlier in the year.
Redfin data shows that a household must earn $109,796 annually to purchase the median-priced U.S. home in June 2026 while keeping housing costs at or below 30 percent of gross income. That figure is 0.5 percent lower than the record $110,382 required one year earlier, suggesting a slight easing in the income threshold even as home prices have remained elevated.
Live FRED data as of 13 August 2026 place the 30-year fixed mortgage rate at 6.67 percent and the 15-year fixed at 5.96 percent. The 10-year Treasury yield stands at 4.63 percent, producing a 2.04 percent spread over the benchmark note. At these rates, principal-and-interest payments on a median-priced home absorb a larger share of monthly income than they did when rates were below 4 percent, which is the primary reason the HAI has not returned to pre-pandemic levels.
State-level figures underscore the uneven nature of affordability. In California’s second-quarter 2026 Housing Affordability Tracker, median monthly ownership costs reached approximately $4,600—66 percent higher than median rents—while local incomes have not kept pace. Conversely, Data In Race’s 2026 price-to-income analysis ranks several Midwest and Southern metro areas as the most attainable, with ratios below 3.5 years of local median income versus the national 5.4-year benchmark.
| Month (2026) | Housing Affordability Index |
|---|---|
| March | 112.0 |
| April | 108.0 |
| May | 105.1 |
| June | 101.8 |
| July | 103.3 |
The table illustrates a clear dip through June followed by a modest rebound in July, consistent with the 30-year fixed rate holding in the mid-6 percent range.
NAR’s next monthly HAI release is scheduled for late August, and the next quarterly metropolitan report is set for 29 October 2026. Market participants tracking these releases can run live scenarios at HomeRates.ai to model how incremental rate changes or income growth would alter qualification thresholds in their specific zip codes.
As of mid-August 2026, the national Housing Affordability Index sits just above 100, indicating that a median-income household can technically qualify for a median-priced home. However, the $109,796 income threshold and 6.67 percent 30-year rates mean that many individual buyers—especially in coastal states—still face stretched budgets. Continued monitoring of FRED rate data and NAR index releases will reveal whether the recent uptick in affordability persists.
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