Posted By Alan Donald @ Apr 12th 2010 9:05am In: Buyers

Home Affordability Chart 2010

Affordability remains at record levels, supported by the lowest mortgage rates in decades, low home prices, and the first-time home buyer tax credit.

The home price-to-income ratio continues to remain well below the historical average of 25 percent. The ratio now stands at 14.2 percent.

Would-be buyers should consider their COST to buy and not only the PRICE of the home. While it is true that we may still not be at the bottom of the market in terms of prices, any increase in mortgage interest rates (and rates ARE under pressure to increase) could erase any potential gains from waiting to buy at the very bottom of the market.

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