Falling Housing Prices

Falling home prices are making buying a home more affordable these days. This is great news for the U.S. economy because so far the slumping housing market has been a drag on the economy.

Many people are stretching to make their mortgage payments due to the recent boom years of the real estate market. In July mortgage payments represented 25% of people’s household income. Currently it represents 23%. Industry experts say anything above 22% of the household income is high.

The west coast of the country is getting hit the worst, with the average mortgage representing 35% of people’s income. Only time will tell how this will effect the foreclosure market.