October 2026 housing affordability data shows median-income families need 34% of income for a median new home, with the FIXHAI at 104.7 amid 7.28% 30-year rates.
As of the second quarter of 2026, a family earning the national median income of $106,800 required 34% of its gross income to cover the mortgage payment on a median-priced new home valued at $410,700, according to the NAHB/Wells Fargo Cost of Housing Index. That figure rose from 32% in the first quarter, driven by a 30-plus basis-point increase in average mortgage rates and a 2% rise in median new-home prices.
The St. Louis Fed’s Fixed Housing Affordability Index (FIXHAI) stood at 104.7 for August 2026, up from 102.8 in July and 101.8 in June. An index reading above 100 indicates that a median-income household has just enough income to qualify for a mortgage on a median-priced existing home with a 20% down payment.
Live data from FRED as of October 1, 2026, show the 30-year fixed mortgage rate at 7.28%, the 15-year fixed at 6.6%, and the 10-year Treasury yield at 5.24%, producing a 2.04-percentage-point spread. These rates remain well above the sub-3% levels seen in 2021 and continue to exert upward pressure on monthly payments.
California’s Housing Affordability Tracker for the second quarter of 2026 illustrates how quickly the gap widens at the state level. The income required to qualify for a mortgage on a bottom-tier home has risen sharply, while median-tier homes now demand incomes far above the statewide median. Nationally, the low-income Cost of Housing Index surged 65% year-over-year, underscoring that affordability erosion is most acute for households below the median.
LongtermTrends data show the ratio of the Case-Shiller Home Price Index to average personal income remains elevated compared with pre-pandemic levels. Although home-price growth has moderated, the combination of higher rates and still-high valuations keeps the monthly payment burden above historical norms.
| Quarter | Median New-Home Price | % of Median Income for Mortgage | FIXHAI (Aug) |
|---|---|---|---|
| Q1 2026 | $402,600 | 32% | — |
| Q2 2026 | $410,700 | 34% | 104.7 |
The next FIXHAI update is scheduled for October 13, 2026, and the NAR’s quarterly Metropolitan Median Area Prices and Affordability release will follow on October 29. Market participants will watch whether the modest improvement in the August index is sustained or reversed by any further rate movement.
With 30-year rates at 7.28% and median-income families allocating 34% of earnings to new-home payments, housing affordability in October 2026 remains constrained relative to pre-2022 benchmarks. Readers can run live scenarios at HomeRates.ai to model how rate changes or down-payment adjustments would affect their personal qualification metrics.
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