[go back to our main site]AOL Real Estate – February 17, 2012
Recently released data suggests that borrowers could be looking at once-in-a-lifetime deals, as rock-bottom prices and record-low interest rates continue to create perfect storm buying conditions.
Numbers released by the National Association of Home Builders on Thursday indicate that home affordability has hit a 20-year high. The release agrees with a recent Department of Housing and Urban Development assessment that found that affordability is at a 41-year peak.
In the fourth quarter of 2011, 75.9 percent of homes sold were affordable to families who earn the national median income of $64,200; that’s according to the Association of Home Builders/Wells Fargo Housing Opportunity Index. But even as consumers would seem to be poised to cash in on a market brimming with deals, rigid lending requirements continue to prevent many borrowers from capitalizing on the opportune conditions, the association says.
“While today’s report indicates that homeownership is within reach of more households than it has been for more than two decades, overly restrictive lending conditions … remain significant obstacles,” Barry Rutenberg, who is chairman of the National Association of Home Builders, said in a statement
