September 2026 housing affordability data shows the index at 103.3, with 30-year rates at 6.71%—see which states improved and what it means for buyers.
The Housing Affordability Index (HAI) reached 103.3 in July 2026, up from 101.8 in June, according to FRED data. An index above 100 indicates that a median-income household can qualify for a median-priced home with a 20 percent down payment and prevailing mortgage rates. While the reading marks the second consecutive monthly increase, the index remains well below the 150-plus levels recorded before 2022.
Live market data from FRED on 3 September 2026 show the 30-year fixed mortgage rate at 6.71 percent and the 15-year fixed at 5.98 percent. The 10-year Treasury yield stands at 4.79 percent, producing a mortgage spread of 1.92 percentage points. At these rates, principal-and-interest payments on a $400,000 loan total roughly $2,590 per month on a 30-year term, compared with $2,070 at 5 percent.
Nationally, the median-income home-price ratio settled at 3.9 in 2026, meaning a median-priced new home costs 3.9 times median household income. The National Association of Home Builders (NAHB) reports that affordability improved modestly in the first half of the year, yet remains out of reach for most first-time buyers. In California, second-quarter 2026 data indicate that monthly ownership costs averaged $4,600—66 percent above typical rents—highlighting the persistent gap between owning and renting.
Realtor.com’s 2026 Affordability & Homebuilding Report Card shows Kansas rising seven spots to No. 13 with a grade of B. The state’s median home price of $292,632 requires only 27.0 percent of median income, illustrating how lower construction volumes relative to population can translate into better affordability. Conversely, states with rapid price growth continue to post ratios above 5.0.
| Month | Housing Affordability Index |
|---|---|
| Jul 2026 | 103.3 |
| Jun 2026 | 101.8 |
| May 2026 | 105.1 |
| Apr 2026 | 108.0 |
| Mar 2026 | 112.0 |
Source: FRED (FIXHAI series).
The National Association of Realtors (NAR) will release its next quarterly metropolitan price and affordability update on 29 October 2026. Absent a significant decline in mortgage rates or a measurable increase in inventory, the national index is unlikely to climb above 110 before year-end. Prospective buyers can run live scenarios at HomeRates.ai to test how rate movements or price changes would affect qualification.
Housing affordability in 2026 has edged higher but remains constrained: an index of 103.3, 30-year rates at 6.71 percent, and a 3.9 income-to-price ratio together indicate that only households at or above median income can comfortably purchase the median home. Continued improvement will require either lower rates or faster income growth relative to prices.
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 →