Great news

Homebuyers starting to return to the market

Thanks to record low mortgage rates and declining home prices, 55 million families-or half of all U.S. households-can afford today's $200,000 median-priced new home, according to figures released by the National Association of Home Builders (NAHB). Based on data from the U.S. Census Bureau comparing home prices, mortgage rates and minimum income needed to purchase a median-priced home in February 2007 and February 2009, a typical family today can purchase a house with $20,000 less in household income and save nearly $500 per month on their principal, interest, taxes and insurance. The number of households that can afford to purchase a home today is 55.4 million, compared with 38.4 million two years ago, according to figures compiled by NAHB. Entering the crucial spring home buying season, there are other signs that buyers are starting to return to the market. Single-family permits were up 11 percent in February, new and existing home sales also posted gains and the huge inventory backlog is being slowly whittled down.