Homes More Affordable, Group Says

WASHINGTON The ability of the typical American family to buy apreviously owned home grew from April through June to the highestlevel in nearly 20 years, a real estate trade group said Tuesday.

The National Association of Realtors said its Composite HousingAffordability Index rose to 132.6 during the second quarter for thefourth straight increase.

The index, up from 118.9 at the same time last year, was thehighest since it measured 137.2 during the fourth quarter of 1973.

"The economic conditions for purchasing a home have beenimproving steadily for one year now," said Realtors President WilliamS. Chee. "With the lowest interest rates in two decades, arecovering economy and healthy home sales, this is the time forconsumers to be in the market."

The index measures the ability of a family earning the medianincome to purchase a median-priced, previously owned home. Themedian means that half of the incomes are larger and half aresmaller, or half of the homes cost more and half cost less.

In addition to the composite index, the Realtors said a secondone that measures the purchasing power of first-time buyers also rosefor the fourth straight quarter.