September 2026 housing affordability index sits at 105.6, showing median-income households can now qualify for median-priced homes at $429,300 with 30-year rates at 6.95%.
As of September 2026, the U.S. Housing Affordability Index stands at 105.6, according to the National Association of Realtors (NAR). An index above 100 indicates that a median-income household can qualify for a mortgage on a median-priced home. The latest reading is up from 97.5 one year earlier, reflecting modest improvement even as 30-year fixed mortgage rates remain elevated at 6.95% (FRED, 17 September 2026).
| Metric | Value | Source |
|---|---|---|
| Median Home Price | $429,300 | NAR |
| Median Household Income | $81,604 | Census Bureau |
| Housing Affordability Index | 105.6 | NAR (May 2026) |
| 30-Year Fixed Mortgage Rate | 6.95% | FRED (17 Sep 2026) |
| 15-Year Fixed Mortgage Rate | 6.26% | FRED (17 Sep 2026) |
| 10-Year Treasury Yield | 4.96% | FRED (17 Sep 2026) |
| Mortgage Spread | 1.99% | FRED (17 Sep 2026) |
| Home-Price-to-Income Ratio | 5.3 | Census / NAR |
Affordability is not uniform. NAR data for March 2026 show the Midwest posting the strongest index at 138.0, while the Northeast lagged at 98.7. Median prices in the Northeast reached $524,700 versus $327,600 in the Midwest, illustrating how local price levels and income distributions drive the national average.
The 105.6 reading rests on two primary inputs: the median home price of $429,300 and the median household income of $81,604. With a 20% down payment and the prevailing 6.95% 30-year rate, principal-and-interest payments equal roughly 22.6% of median income—below the 25–28% threshold many lenders consider sustainable. However, the 5.3 price-to-income ratio remains nearly double the historical average of 2.6–3.0, indicating that buyers still stretch relative to long-term norms.
The index rose from 97.5 in mid-2025 to a peak of 110.6 in April 2026 before easing to 105.6 by May. The modest retreat coincides with a 0.69 percentage-point increase in the 30-year rate between March and September 2026, underscoring how sensitive affordability remains to even small rate movements.
Despite the aggregate improvement, NAHB/Wells Fargo data confirm that entry-level buyers continue to face tighter conditions. Higher property taxes, insurance costs, and student-loan obligations often push effective housing costs above the median-income benchmark, particularly in coastal metros where price-to-income ratios exceed 7.0.
With the 10-year Treasury at 4.96% and the mortgage spread at 1.99%, further rate relief appears limited unless inflation moderates or the Federal Reserve signals cuts. Absent a meaningful decline in either home prices or rates, the Housing Affordability Index is likely to oscillate between 100 and 110 through year-end.
Readers can run live scenarios at HomeRates.ai to see how changes in rates or down-payment size would affect their personal qualification.
Nationally, the September 2026 affordability index of 105.6 shows median-income households can now clear the mortgage-qualification bar for a $429,300 home at current 6.95% rates. However, the elevated 5.3 price-to-income ratio and persistent regional disparities mean many buyers—especially first-time purchasers—will continue to face constrained choices.
FRED data, market analysis, and refi alerts — weekly, no spam.
No spam. Unsubscribe any time.
See how today's rates affect your real numbers — run a live mortgage scenario instantly.
Run a Live Scenario →