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National Housing Affordability Index

National Housing Affordability Index 2009

The Housing Affordability Index (HAI) measures whether or not a typical family could qualify for a mortgage loan on a typical home. A typical home is defined as the median-priced, existing single-family home. A typical family is defined as one earning the median family income. A value of 100 means that a family earning the median income has exactly enough income to qualify for a mortgage loan on a median priced home, assuming a 20% down payment. For example, a HAI of 120 means a family earning the median family income has 120% of the income necessary to qualify for a conventional loan covering 80% of a median-priced singlefamily home. An increase in the HAI, then, shows that this family is more able to afford the median priced home. The higher the HAI; the more home this family can buy for the money. The HAI is at an all time high.