Home Affordability Falls to 2-Year Low

The affordability of homes in the U.S. fell to a two-year low in the second quarter as higher mortgage rates and prices made it harder for people to buy real estate.

The housing affordability index declined to 133.6 from 144.1 in the previous quarter, the National Assn. of Realtors said. It was the lowest since the second quarter of 2002, when the index was 131.7.

A reading of 100 means a household with the national median income makes exactly enough to pay for a median-priced home. A higher reading indicates more affordability.