Fewer new buyers can afford a home

Housing affordability for first -time buyers dives as rates rise.
November 7, 2005: 4:56 PM EST
By Les Christie, CNN/Money staff writer

NEW YORK (CNN/Money) - Although earnings have risen about 2.6 percent, housing is even less affordable for first-time buyers than it was a year ago, according to the latest findings from the National Association of Realtors.

The NAR found that the average price nationally for a starter home rose to $183,500 in the third quarter, up $23,500 in the past year.