Will Housing Affordability Ever Return?

[Michael Carbonare]

How bad is the housing affordability crisis?  We would need any 1 of these 3 things to fix it, according to Fannie Mae.
1. US incomes surge 60%
2. US home prices plummet 38%
3. Mortgage rates drop to 2.35%, (from about 6.5% now)
None of these seem remotely possible. The housing market is FUBAR.  When the politicians in DC decide to help, you know we're going to pay a hefty price.  How did we get to this?  How do we get out of it?

[Jules Aton]

I think it is sort of like gas prices there will be some ebb and flow, especially based on supply and demand but overall never returning to what it was years ago unless as the baby boomers die off there becomes a surplus of RE. I also think our country has set standard of living and quality of life expectations so high that we have dismissed the idea of a starter home when in fact there are still ugly, less expensive properties out there if someone can tolerate living without quartz counter tops and central air condition....gasp,  I know.