Housing affordability hits 4-year low

|By:, SA News Editor

The average mortgage payment on a median-priced U.S. home as a share of income rose to 16% in August, according to the NAR. It's all about interest rates, as the rise occurred even as median prices slipped slightly this summer.

Still - by this measure - homes are still more affordable than at any time between 1989 and 2008.

The homebuilding sector is among the worst-performing today amid this news and word of rising incentives (lower profit margins) now necessary to move product.

ETFs: ITB -1.9%, XHB -1.6%.

TOL -2.1%, RYL -3.1%, HOV -1.4%, WLH -3.5%, PHM -2.9%.