Housing Affordability Begins to Slide

LoganMohtashami | Dec 11, 2012 01:33 PM ET Problem with Affordability Index Why haven`t Americans been buying homes in strong numbers. Mortgage rates have fallen from 5% in early 2011 to as low as 3.25% and the index has been improving for years and mortgages application have been dead since mid 2010 It`s because the after tax/expense incomes of majority of Americans, (Knock off the top 10%) is very weak. Since, DTI isn`t great, you go to the next stage of capacity and it`s assets. Liquid Asset ? With the destruction of the fake net worth of Americans since 2007 it has been very hard to get 3.5% , 5% 10% and especially 20% down for a loan. Take the top 10% out of the equation and there you go. Then finally, look at majority of the jobs that have been created in this "Recovery" It`s been low

Boulderguard | Dec 11, 2012 01:47 PM ET Okay, let me make this easy for everyone. If you can`t afford to buy a house, right here, at these prices, you simply can`t afford to buy a house. Buying a house isn`t for everyone. And you`re likely to get in over your head. We have enough properties in foreclosure already.

CaptAmerica1011 | Dec 11, 2012 01:53 PM ET you voted for Obama, now you`re broke and unemployed and can`t afford a home......brilliant!, all those freebies have to get paid by somone

johnsmyth | Dec 11, 2012 01:55 PM ET Banks are only making loans to those who don`t need them. That is the #1 qualifier. I say don`t sell a house to anyone who can`t put 20% down. Bring back the "assumable" mortgage (that will make bankers squirm), but will help the market.

SmithfieldConservative | Dec 11, 2012 02:01 PM ET The reason this country got in this mess is people owning homes that couldn`t afford them. The government pushed this and between the politicians and the regulators everything went south. People like Dodd and his boy Franky have gotten free rides. For you government moochers, You will never own a house, and shouldn`t, unless you get out and go to work.

hooey1234 | Dec 11, 2012 02:10 PM ET ‚€ĘThe mortgage industry escaped any real consequence from its systemic fraud (plenty of individual stupidity to go around also) ‚€ĘThe PTB plan to reflate the housing market with super-low mortgage rates and down payments has worked to some degree ‚€ĘThe financial sector‚€™s plan to boost home prices by limiting supply has also worked ‚€ĘZIRP has created a ‚€œcrowded trade‚€Ě in low-risk investments with attractive yields such as corporate bonds, dividend stocks, and real estate, which is being fueled by a self-reinforcing perception that ‚€œthe bottom is in‚€Ě But the reality is that here are two ways to expand the pool of qualified home buyers, and they both rely on expanding leverage: A) lower the down payment from 20% cash to 3%, and B) lower the mortgage r

EugeneDAlessio | Dec 11, 2012 02:12 PM ET Come to Florida we have more forclosed houses then the crooks know what to do with......we lead the country in fraud...you can still get 4 for 100K down in the sunny state....you can`t sell them after you fix them up because everyone wants to buy them for nothing and the renter market is getting saturated.....the hedge funds are competeing with each other and leaving the scraps for the house hunters

JDH1 | Dec 11, 2012 02:19 PM ET As the incomes of middle and working class people continue to fall it is inevitable that the prices of the goods and assets (like homes) will have to fall with those wages or those goods simply won`t sell. The price of just about everything is elastic with respect to income. When the pool of available buyers with enough money to buy homes at the current prices dries up, prices of available homes will have to fall to a market clearing price or there will be no sales. This is an inevitable outcome from our free market/globalization race to the bottom for wages. There is no escaping the resulting deflation in asset prices if wages continue to decline.

mrdovenb | Dec 11, 2012 02:21 PM ET Let me make sure I understand this article: 1) Low housing prices are bad; 2) high housing prices are bad. Did I get that right? Typical CNBC "sky is falling" nonsense. Surprised Jeff Cox didn`t write this absurd article.

13thfloor | Dec 11, 2012 02:26 PM ET I hate the way markets work. Can`t we just have the government allocate resources?






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