October Housing Affordability Surges To Highest Level Since 2002: Where Are The News Reports?
Since June 2008 when the HAI was at only 119.3 (due to higher home prices and interest rates, $213,600 and 6.28% respectively), the 22.5 point increase in housing affordability to 141.8 over four months should play an important role in the recovery process for the slumping real estate market. It's the best buyer's market for real estate since at least 2002.
Comment: The NAR's report on housing affordability index released last week received no media attention at all; I couldn't find a single news report on housing affordability reaching a six-year high - shouldn't that be reported? On the other hand, you'll find hundreds of stories on foreclosures and falling home prices. Go figure. Positive, upbeat news doesn't sell as well as gloom and doom? Further, housing affordability will likely surge next month as a result of the recent drastic drop in 30-year mortgage rates to a five-year low of 5.47%.