Dive summary:
- The portion of homes sold during the third quarter that would be affordable to someone earning the median U.S. income of $65,000 inches up to 74%, but banks mortgage lenders are not helping those buyers take advantage of the market.
- Lower interest rates make mortgages more affordable. Nonetheless, the National Association of Home Builders chairman, Gary Rutenberg, noted that "overly tight lending conditions" make it "very difficult for potential buyers to qualify for and obtain those great rates."
- Fed Chairman Ben Bernanke sees things the same way, saying in a speech last week that lenders began tightening standards in 2007, and they're not letting go five years later.
From the article:
About 74% of homes sold during the third quarter were affordable to those earning a median income of $65,000. This compares to about 73% of homes sold in the previous quarter, according to the National Association of Home Builders/Wells Fargo Opportunity Index. ...
