Fewer can buy mid-priced house in state

Fewer households in California could afford a median-priced home in May. The percentage of households fell to 19% from the same month last year, when the housing affordability index was at 27%, according to the California Assn. of Realtors. The index was 20% in April of this year.

The minimum household income needed to purchase a median-priced California home at $465,160 in May was $108,450, based on a typical 30-year, fixed-rate mortgage at 5.77% and assuming a 20% down payment.

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Briefly

* The average rate on the benchmark 30-year mortgages fell last week, for the third straight week, to a two-month low of 6.01% from 6.21% the week before, according to Freddie Mac.

The one-year adjustable rate fell to 4.05% from 4.19%. The 15-year fixed rate was down to 5.42% from 5.62%.

* New mortgage applications jumped in the week ended July 2 on a sharp decline in mortgage rates, reflecting a surge in home purchases and refinancings, the Mortgage Bankers Assn. said last week.

From Times wire reports