Buying a Home Like It's 1999

Buying a home has become a confusing process over the last couple years, but lately the biggest purchase decision of your life has become simpler.  Due to sharp home price drops, home affordability is in a great place.

The drop in home values caused by the mortgage crisis has resulted in at  least one positive outcome: Prices have fallen so far and so fast that home affordability is back to pre-housing boom levels, according to a new report.

After reaching a peak in late 2005, the ratio of home prices to annual income fell to its lowest levels in 35 years last September, according to data compiled by by Moody's Analytics, which tracked median home prices and annual incomes in 74 markets.

By that measure, housing affordability at the end of September had returned to or surpassed the average reached between 1989-2003 in 47 of those markets, The Wall Street Journal reported, noting that most economists believe the housing boom took off in 2003.

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From Aol

National Unemployment Rate Falls to 9%

The nation's unemployment rate dropped to 9.0 percent in January, although employers added just 36,000 jobs to their payrolls, according to figures just released by the Department of Labor

 

January's rate is down from 9.4 percent in December, and is the lowest jobless reading reported by the federal government in two years. 

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Foreclosure freeze coming for the holidays

NEW YORK (CNNMoney.com) -- Several of the big mortgage players are playing Santa Claus again this year, saying they will not evict borrowers in default during the two weeks surrounding Christmas.

Freddie Mac (FMCC) and Fannie Mae (FNMA), the two government-controlled mortgage giants, are freezing all foreclosure evictions on mortgage loans they own or back from Dec. 20 through Jan.3.

Evictions mark the end of the foreclosure process. After the home is sold at foreclosure auction -- or banks take possession of the home -- owners must leave the property or face eviction notices.

"If the property is occupied, our foreclosure attorneys will suspend the eviction to provide a greater measure of certainty to families during the holidays," said Anthony Renzi, executive vice president of single family portfolio management at Freddie Mac. Rest of the Article