This Week’s News Shorts

These are short excerpts from the week’s real estate news.

Home Buying Most Affordable in Decades

CNNMoney article says that buying a home now is more affordable than it has been in the last twenty years. The National Association of Home Builders/Wells Fargo Housing Opportunity Index hit a record level of affordability due to low home prices and rock-bottom mortgage rates.

Home affordability at this extremely high level isn’t translating into sales though. The tough mortgage market and people’s inability to afford down payments make it impossible for a large portion of potential home buyers to purchase even if they are inclined to do so.

30-Year Mortgage Rate Holds at Record Low

The lowest rate ever recorded in the 40 year history tracked is 3.87% for the 30-year fixed mortgage, and the rate still in effect last week. The 15-year fixed rate inched slightly higher to 3.16% from 3.14%.

Citigroup Fined $158 Million

The Federal Housing Administration will receive $158 million from Citigroup as a settlement of inaccurately claiming that certain mortgages were eligible for government insurance. Of the 30,000 mortgages Citigroup endorsed from FHA insurance since 2004, more than 30% have defaulted, including 47% of those originated in 2006 and 2007. This case was separately handled from the major $26 billion states settlement.