The Best Home Affordability in a Generation Isn’t Helping the Housing Market

Recent housing data released by the National Association of Home Builders (NAHB) and the Commerce Department points to a weak housing market that will continue to be weak in 2011 and into 2012. Consumers haven't responded to mortgage rates that are near record lows and housing is more affordable than it has been in a generation. Current conforming 30 year mortgage rates are averaging 4.71% as reported by MonitorBankRates.com.

Find today's mortgage rates and refinance rates by searching our rate tables at MortgageRates.MonitorBankRates.com. No personal information is needed to display a list of rates.

The National Association of Realtors' housing affordability index is at the lowest level ever since records began in 1970. The typical monthly mortgage payment (principal and interest) for the purchase of an existing median-priced home is only 13 percent of gross household income. Just a few years ago many potential homeowners were priced out of the frothy housing market.

Loan Type

Purchase Refinance with Cash out Refinance

State

Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware District Of Columbia Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

FICO Score

Superior (780-850) Exceptional (760-779) Excellent (740-759) Very Good (720-739) Good (700-719) Above Average (680-699) Average (660-679) Fair (640-659) Need Improvement (620-639) Poor (350-620)

Loan Amount

$

Points

Up to 0 points Up to 0.5 points Up to 1 points Up to 1.5 points Up to 2 points Up to 2.5 points Up to 3 points

LTV

%

Loan Term

 15-Year Fixed  20-Year Fixed  30-Year Fixed  5-Year ARM  7-Year ARM  10-Year ARM

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The lenders whose rates and other terms appear on this chart are ICB's advertising partners. They provide their rate information to our data partner RateUpdate.com. Unless adjusted by the consumer, advertisers are sorted by APR from lowest to highest. For any advertising partners that do not provide their rate they are listed in advertisement display units at the bottom of the chart. Advertising partners may not pay to improve the frequency priority or prominence of their display. The interest rates, annual percentage rates and other terms advertised here are estimates provided by those advertising partners based on the information you entered above and do not bind. Any lender Monthly payment amounts stated do not include amounts for taxes and insurance premiums. The actual payment obligation will be greater if taxes and insurance are included. Although our data partner RateUpdate.com collects the information from the financial institutions themselves, the accuracy of the data cannot be guaranteed. Rates may change without notice and can change intraday. Some of the information contained in the rate tables including but not limited to special marketing notes is provided directly by the lenders. Please verify the rates and offers before applying for a loan with the financial institution themselves. No rate is binding until locked by a lender.

Lender

APR / Rate

Fees / Points

Payment

NMLS #757416

5.648%

15-Year Fixed

5.500%

$3,848

Includes 0.962 points for $3,848

Lender Fees: $0

$3,269 /mo

Next >

NMLS #1067

5.735%

15-Year Fixed

5.625%

$2,848

Includes 0.712 points for $2,848

Lender Fees: $0

$3,295 /mo

Next >

NMLS #1025894

5.774%

15-Year Fixed

5.625%

$3,856

Includes 0.789 points for $3,156

Lender Fees: $700

$3,295 /mo

Next >

NMLS #1067

6.708%

30-Year Fixed

6.625%

$3,440

Includes 0.860 points for $3,440

Lender Fees: $0

$2,562 /mo

Next >

NMLS #757416

6.713%

30-Year Fixed

6.625%

$3,660

Includes 0.915 points for $3,660

Lender Fees: $0

$2,562 /mo

Next >

NMLS #2473786

6.735%

30-Year Fixed

6.624%

$4,611

Includes 0.879 points for $3,516

Lender Fees: $1,095

$2,561 /mo

Next >

NMLS #1025894

6.739%

30-Year Fixed

6.625%

$4,696

Includes 0.999 points for $3,996

Lender Fees: $700

$2,562 /mo

Next >

NMLS #399799

6.872%

30-Year Fixed

6.750%

$5,180

Includes 0.963 points for $3,852

Lender Fees: $1,328

$2,595 /mo

Next >

NMLS #401822

6.884%

30-Year Fixed

6.750%

$5,495

Includes 0.875 points for $3,500

Lender Fees: $1,995

$2,595 /mo

Next >

NMLS #3030

6.889%

15-Year Fixed

6.750%

$3,500

Includes 0.875 points for $3,500

Lender Fees: $0

$3,540 /mo

Next >

NMLS #3030

7.602%

30-Year Fixed

7.500%

$4,000

Includes 1.000 points for $4,000

Lender Fees: $0

$2,797 /mo

Next >

NMLS #401822

7.804%

15-Year Fixed

7.500%

$7,500

Includes 0.875 points for $3,500

Lender Fees: $4,000

$3,709 /mo

Next >

Rate data provided by RateUpdate.com. Displayed by ICB, a division of Mortgage Research Center, NMLS #1907, Equal Housing Opportunity. Payments do not include taxes and insurance premiums. Actual payments will be greater with taxes and insurance included. Rate and product details.

The numbers released by the NAHB showed new home builder sentiment stuck at a low of 16 in their National Association of Home Builders/Wells Fargo Housing Market Index (HMI).  The Commerce Department said new home construction and permits for future building both declined in April.

Both numbers show how bad things are right now in the housing market but will help the market recover in the long run. Fewer homes are being built now and once demand catches up with supply the home prices will recover.

Before we get to that point, the glut of foreclosures and existing homes for sale has to come down. Existing home sales have been uneven for the past several months (see video below). Other factors weighing on the housing market include high unemployment and the perception that buying a home is a bad investment.

Here is more on existing home sales in March from Lawrence Yun, NAR chief economist.