Housing affordability

Affordability improved for a fourth straight month, but questions remain about whether recent trends will bring a significant number of buyers into the housing market.

Moderating price growth and higher wages are leading to affordability relief, according to the Mortgage Bankers Association.

Prices in several cities came in more than 20% above what would be considered a sustainable level when compared to local economic factors, according to the rating agency's report.

With a scarcity of listings driving high home prices, both repeat and new purchasers are putting the most money down in decades, the report found.

Home purchasers had to come up with 0.9% more in April versus what they would have paid in March and 11.8% higher on a year-over-year basis, the Mortgage Bankers Association said.

Fannie Mae researchers found housing costs decelerating for the fourth straight quarter, but limited inventory may be driving hopeful buyers to look for opportunities in the new-construction market.

Buyer affordability has decreased by almost 22% in the past year, according to the Mortgage Bankers Association.

Quarterly numbers also show the smallest gain in appreciation since 2011, with values decreasing on an unadjusted basis, according to Fannie Mae.

Consumer demands for lower density and more affordable prices fueled a larger share of construction outside urban cores, but recent trends have led to slowdowns across the board.

At the same time, homes bought with FHA-backed loans accounted for the smallest share since 2007, according to an Attom sales report.