[quote=esmith]How about we stop panicking and try to do some level-headed analysis.
– Knowing that you can get a 5% 30-year fixed mortgage, what would be your total monthly payment if you bought a median house today? Let’s say 20% down…
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I heard the argument that many of the people that should be buying today with 20% down, already jumped in the game a couple years ago with fancy financing. So there aren’t many up and comers with a good chunk of change down. Not enough to buy up all the inventory out there and the wave of foreclosures about to hit us.
[quote=esmith]
– When was the last time houses were this cheap?
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I still don’t think housing prices are 2-3 times the median income for any given area, are they? [shrug] I don’t think they are even 4 times in any area.
With other costs rising (health care, gas, food, etc.), people don’t have as much money to spend on mortgages. Not to mention most people in my generation have a great deal of debt (student loans, car loans, credit cards run up, etc.).
My guess is that most people under 35 can’t afford a mortgage unless they eat cup ‘o noodles every day of the week.
