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HOUSING AFFORDABILITY DIPS BUT STILL POSITIVE The
nation's housing affordability conditions remained favorable
during the second quarter of 2004, but rising interest rates
and higher home prices mean affordability declined from the
second-highest level in 21 years during the first quarter,
according to a recent National Association of REALTORS® (NAR)
report. NAR's composite Housing Affordability Index was 133.6
during the second quarter of 2004, down 10.5 percentage points
from 144.1 in the first quarter; it was 7.6 points below the
same period a year earlier when it stood at 143.8. The index
measures affordability factors for all homebuyers making a
20 percent downpayment, with an index of 100 defined as the
point where a median-income family has the exact amount of
income needed to purchase a median-priced existing home. The
first quarter 2003 reading of 144.9 was the highest index
since 1973, according to the report. Western states had an
affordability index at 91.1 in June 2004, the lowest in the
nation. That compares with an affordability index of 97.1
for the West in May 2004, and a rating of 104.7 in June 2003,
according to the report.
LOAN PURCHASES DECLINE The Market Composite
Index, a measure of mortgage loan applications for purchases
and refinancings, decreased 0.7 percent on a seasonally adjusted
basis for the week ending in August 6 from 616.1 one week
earlier, according to a report from the Mortgage Bankers Association
(MBA) released today. On an unadjusted basis, the Index decreased
by 1.4 percent for the week ending August 6 compared with
the previous week and was down 24.2 percent compared with
the same week one year earlier. The refinance share of mortgage
activity increased to 37.2 percent of total applications for
the week ending August 6 from 35.8 percent the previous week.
The adjustable-rate mortgage (ARM) share of activity increased
to 34.2 percent of total applications for the week ending
August 6 as compared with 33.5 percent the previous week,
according to the report.
Fast Facts Calif. median home price - June
04: $469,170 (Source: C.A.R.) Calif. affordability index -
May 04: 19 percent (Source: C.A.R.) Calif. highest median
home price by C.A.R. region - May 04: Santa Barbara South
Coast $1,115,000 (Source: C.A.R.) Calif. lowest median home
price by C.A.R. region April 04: High Desert $214,470 (Source:
C.A.R.) Mortgage rates - week ending 8/6: 30-yr. fixed: 6.14%;
Fees/points: 0.5% 1-yr. adjustable: 5.44%; Fees/points: 0.5%
15-yr. fixed: 5.44%; Fees/points: 0.5% (Source: Freddie Mac)
Information provided by - C.A.R. Newsline is published by the CALIFORNIA ASSOCIATION OF REALTORS®, a trade association representing more than 135,000 REALTORS® statewide.
