Report Says Housing Affordability Improved In 2010
03/14/11 4:04PM By Lynne McCrea
(Host) A Vermont economist says ‘housing affordability' improved in 2010 - for the fourth year in a row.
University of Vermont professor Art Woolf says low interest rates have made it easier for people to get into the housing market.
(Woolf) "The good news is that for people who have the down payment and have good credit, housing is very affordable right now in Vermont."
(Host) Woolf says a couple of factors are involved. According to his economic forecast, family income inched up slightly in 2010.
And, most importantly, mortgage rates fell last year -down to levels that haven't been seen since the 1950's.
(Woolf)"When affordability is bad, even if people have the down payment and have the income, they often find that things are just very expensive when you start looking at what a mortgage is going to cost you. So this is a good time to be in the market - so I think that's good news for the housing market, it's good news for builders, it's good news for banks that are making loans."
(Host) Woolf says he sees signs that the economy is recovering, and - with that - he expects mortgage rates will start to inch up later this year