Nationwide, home affordability has received a serious boost from the combination of falling home prices and falling mortgage rates. Today, because of the sagging economy, in most parts of the country, the cost of owning a home versus renting one is now very close to its historical average. That said, though, near every major city, there are some neighborhoods in which home affordability and quality of life are stand-out.  Using real estate data from OnBoard Informatics, Business Week highlights these areas in a report it calls the "Best Affordable Suburbs".  Now, the country's "Best ...

In reading the headlines this morning, you'd think that last month's Existing Home Sales figure signaled more trouble ahead for the housing market. Quite the contrary. Beyond the attention-grabbing headlines is the real story;  the one that shows -- once again -- that housing market fundaments are coming back into balance. As home values tick lower, it appears, value buyers are stepping in and snapping up supply.  It's true that the number of homes sold fell to its lowest levels in 12 years, but we can't ignore the fact that the number of homes available to buy fell, too. Banks ...

One popular housing theory is that --  before a bona fide housing recovery can begin -- the cost of owning a home versus renting one must return to historical levels.If that belief is a truth, a national return to rising home prices may be in store for 2009.  Falling home prices coupled with falling mortgage rates, too, have dropped the relative, after-tax cost of owning a home to 125% of the cost of renting a home. This is the exact 18-year historical average and not since 2001 has the gap been this small. As reported by the Wall Street Journal, though, the study has some ...

As part of the stimulus package passed last week, Congress authorized a temporary increase to conforming loan limits in certain high-cost parts of the country."High cost" is defined by a regions' median sales price. With the temporary increase, a greater share of Americans can now qualify for Fannie Mae- and Freddie Mac-backed loans, usually the least expensive source for mortgage money. Higher loan limits can be good for the housing market and the broader economy for two reasons: Cheaper money can spur new home demand, supporting home values. Higher loan limits render more ...

Traders brushed off Tuesday and Wednesday's passage of the American Recovery and Reinvestment Act and the President's mortgage relief plan, respectively.It showed how unsure markets remain about the stimulus package and its probable impact on the economy. As a result, mortgage markets worsened last week, albeit slightly. It marked the 4th week out of five in which mortgage rates rose. However, there were a few notable new items for American homeowners and home buyers last week: The signed-into-law stimulus package includes a first-time home buyer tax credit Additional banks ...

Everything old is new again. Conforming mortgages are limited by loan size, based on "typical" housing costs around the country.  The current conforming limit on a single-unit property is $417,000. In 2008, as part of the Economic Stimulus Act of 2008, Congress authorized conforming loan limits increases in "high-cost" areas around the country.  In Los Angeles County, for example, a mortgage could be as large as $729,750 and still be considered "conforming". Those temporary increases rolled back effective January 1, 2009, to a maximum of $625,500. However, as part of the ...

In Mesa, Arizona, Wednesday, the President presented the Homeowner Affordability and Stability plan, a multi-pronged effort to support the housing market.The story made the front page of nearly every newspaper in the country. The president's plan is sweeping: Give mortgage servicers incentive work with at-risk homeowners before delinquency starts Give homeowners with good credit but little equity a lifeline to refinance to today's low rates Give Fannie Mae and Freddie Mac additional funding to support strong mortgage markets It's a broad plan with many positive angles, but for ...

The American Recovery and Reinvestment Act of 2009 was signed into law Tuesday in Denver, Colorado.  Also Tuesday, stock markets fell near their November 2008 lows.The two moves are related. With each new stimulus; with each potential jumpstart of the economy, Wall Street questions whether the federal push will be enough to make an impact.  Traders ended undecided on that issue today, but resolute in something else -- that whatever change the stimulus bill will bring, it's not going to come fast enough to help. The sell-off in equities was a boon to home buyers.  For the first ...