New Zealand homes reportedly became more affordable in the three months to February 28 as house prices and mortgage rates fell.

According to Massey University's latest Home Affordability Report, affordability improved by 5.2 percent in the three months to February 28 as the median house price fell by $10,000 to $350,000.

Overall, affordability has improved by 6 percent over the last year.

One of the main drivers was the decrease in average monthly mortgage interest rates from 6.63 percent to 6.59 percent, while the average weekly wage increased from $972.69 to $991.05.

Least affordable areas were:

• Central Otago Lakes, with an index of 133.1 percent of the national average (least affordable);
• Auckland (126 percent);
• Wellington at (105.1 percent).

Most affordable were:

• Southland (65.6 percent);
• Otago (70.6 percent);
• Manawatu/Wanganui (74.8 percent).

Most improved areas were:

• Canterbury/Westland: improved by 9.1 percent;
• Waikato/Bay of Plenty: improved by 4.9 percent;
• Auckland: improved by 4.8 percent;
• Nelson/Marlborough: improved by 0.7 percent;
• Otago and Wellington both improved by 0.6 percent; and
• Manawatu/Wanganui improved by 0.5 percent.