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%.
More from economist Mark Perry. This should be good news, though I expect housing prices to continue to decline until the inventories of existing and new are reduced to normal levels.
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