Housing affordabiltiy at its highest level.

[Nick Gromicko]

According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI), 72.1% of all new and existing homes sold in the third quarter of 2010 were affordable to families earning the national median income of $64,400. The index for the third quarter almost equaled the record-high 72.5% set during the first quarter of 2009 and marked the seventh consecutive quarter that the index rose above 70%. Until 2009, the HOI rarely topped 65% and never reached 70%.

Indianapolis-Carmel, Ind., was the most affordable major housing market in the country where 93.3% of all homes sold were affordable to households earning the area’s median family income of $68,700.

Also near the top of the list of the most affordable housing markets were Youngstown-Warren-Boardman, OH-PA.; Grand Rapids, WY, Dayton, OH, Wichita, KS, Kokomo, IN, Monroe, MI, Mansfield, OH, Lima, OH and Bay City, MI.

[James A. Levy]

I wonder what this will turn into?

[Nick Gromicko]

Inspection jobs.

[John Harrison]

Interest rates can be zero
homes can be priced at half of thier appraisal value.
buyer can have 30% down payment.

If the credit score does not match the lenders requirements you will not be buying a house.

People are being forclosed on.
People are falling behind on their revolving accounts.
This leads to a decline in credit score.

One late credit card payment can reduce your score upwards of 50 - 80 points, it takes several months to regain those points.

[Nick Gromicko]

The credit scoring algorithm may be changing to give more weight to recent history, which would help many.

With it's right hand, the government buys bad paper and lowers interest rates to encourage banks to lend. With it's left hand, the government tightens lending requirements.