Home Affordability Index Drops: Higher mortgage rates...

Home Affordability Index Drops: Higher mortgage rates took away purchasing power from first-time home buyers during the first quarter of 1989, pushing home ownership further out of reach for many people trying to enter the market, the National Assn. of Realtors said. The NAR’s First-Time Home Buyer Affordability Index measured 74.9 for the first three months of the year, meaning that the typical first-time buyer had 74.9% of the income needed to qualify to buy the typical starter home. The index fell from 78.3 in the fourth quarter of 1988.