HI, The attached chart shows that the NAR's Affordability Index is (as of the end of the first quarter of 2009) at an all-time high. Keep in mind, however, that the mortgage payment is calculated using a fully-amortizing mortgage payment. In the recent past, the ability to use non- and negatively-amortizing mortgage products gave an artificial boost to affordability. The accompanying chart shows the NAR's affordability index superimposed with separate indices calculated to 1) the average mortgage rate but using an interest-only payment, and 2) the payment on an option ARM using a 1.5% starting rate. sandiego relaestate