Steve Rall - Realtor, Keller Williams Preferred Realty

Historical affordability index. 21.6% is the historical average represented by the yellow line. Many people believe that in 2005 when the index went above 22% that the housing bubble burst and home prices dropped.

The chart shows what % of the median household income goes towards the principal and interest payment to purchase the median priced home in the USA. Historically any % below 22% is considered a good affordability index

The history of mortgages interest rates in the USA. We are very fortunate to have these low interest rates hang on for so long !!

This chart digs a little deeper into the annual appreciation numbers.