Housing Affordability Lowest Since September 1991

Business Week reports:

According to the National Association of Realtors' monthly measure, affordability in August fell to its lowest level since September, 1991. As Merrill's Rosenberg points out, that turned out to be a bearish signal in 1991. The 12-month trend in average new-home prices fell from plus 4% to minus 3.5% over the following year. Houses will become more unaffordable if interest rates continue to rise.

Even massive leverage will not help eventually.