Housing Affordability Highest in a Year

U.S. housing affordability rose to the highest level in a year during the fourth quarter as low mortgage rates made borrowing cheaper, according to a report by the National Assn. of Realtors.

The group’s housing affordability index rose to 140.7 from 135.9 in the previous quarter, the highest since the fourth quarter of 2001, when it was 141.3, the Washington-based trade group said.

A reading of 100 means a family with the national median income makes exactly enough to pay for a median-priced home, and a higher reading indicates homes are more affordable.