Speaking at a webinar about the improving housing market, Raj Dosaj, vice-president of the behavioral library and home price index at LPS Applied Analytics, says home prices could rise 35 percent without being beyond affordability. Displaying a graph that showed the ratio of the average mortgage payment to median income from 1995 to Jan. 2013, Dosaj says the annual graph has never been lower than Jan. 2013, when it went below 18 percent. He says during the run-up to the housing bubble affordability was stretched, but as home prices fell, so did affordability. As HousingWire tells MHProNews, he did say the increase would be less if interest rates rise, but also noted other signs point to a strong housing market recovery.

(Graphic credit: HousingWire)