Most Affordable Housing in 40 Years

In December of 2010, the median mortgage payment as a percentage of median household income was at the lowest it has been since these statistics have been being tracked in 1971.  Mortgage payments averaged only 14.9% of median household income as compared to 25.1% in 2006.  What this means is the average buyer can purchase more home for the money now than at any time in the past 40 years. 

The combination of low interest rates coupled with low prices are the contributing factors.  Never, at least in the past 40 years, has the combination of price and interest rate been so low.  Normally with rates this low homes would see an appreciation in value due to the increased buying power the buyer has with such low rates.  That increased buying power under normal circumstances would increase demand, therefore putting upward pressure on prices.  Remember economics 101, higher demand stimulates higher pricing until supply catches up to demand.  Well, in this economy, supply is generally way ahead of demand, keeping prices down.  Although inflation, which we are also experiencing in this economy, would normally push interest rates up, they are presently being artificially held down by the fed because of the slow growth the economy has shown, especially in recent months.   The result, an unprecedented opportunity for the real estate buyer able to capitalize on this historic moment in time.

For more more helpful information concerning market trends, homes for sale, mortgage information, community information and much more, visit my website at www.mybestbuy.org.