Spurred by a modest reduction in mortgage interest rates and favorable home prices, nationwide housing affordability in the first quarter of 2016 posted a slight increase, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI).

In all, 65.0 percent of new and existing homes sold between the beginning of January and end of March were affordable to families earning the U.S. median income of $65,700. This is up from the 63.3 percent of homes sold that were affordable to median-income earners in the fourth quarter.

The national median home price fell from $226,000 in the fourth quarter to $223,000 in the first quarter. Meanwhile, average mortgage rates edged lower from 4.09 percent to 4.05 percent in the same period.

For the second consecutive quarter, Youngstown-Warren-Boardman, Ohio-Pa. was rated the nation’s most affordable major housing market. There, 93.1 percent of all new and existing homes sold in the first quarter were affordable to families earning the area’s median income of $53,900.

Meanwhile, Cumberland, Md.-W.Va. claimed the title of most affordable small housing market in the first quarter of 2016. There, 98.0 percent of homes sold during the first quarter were affordable to families earning the area’s median income of $55,100.

For the 14th consecutive quarter, San Francisco-Redwood City-South San Francisco, Calif. was the nation’s least affordable major housing market. There, just 10.4 percent of homes sold in the first quarter were affordable to families earning the area’s median income of $96,800.

Four of the five least affordable small hosing markets were also in California. At the very bottom of the affordability chart was Santa Cruz-Watsonville, Calif., where 16.1 percent of all new and existing homes sold were affordable to families earning the area’s median income of $85,100.

Visit nahb.org/hoi  for tables, historic data and details.

Tags: affordability, housing economics, residential construction