But home buyers who can qualify for a mortgage will want to act soon in order to take advantage of this combination of affordability and rock-bottom rates because prices are rising.
On its quarterly conference call, Hovnanian announced that it hiked prices in 60 percent of its communities this year. "Prices are finally starting to increase after a long decline," Hovnanian told CNBC's "Squawk Box."
"Everyone will look back five years from now, that hasn't bought a house and say, 'What was I thinking?'" he added.
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"Boomerang buyers" are also helping to support the housing recovery. These are buyers who went through foreclosure but are now looking to get back into the market. "It's not unlike a divorced couple wanting to get remarried again," Hovnanian said.
After looking at smaller homes when the housing bubble burst, buyers are also purchasing bigger houses again. "With rates where they are, with prices having come down to where they are, the monthly payments allow them to get more house in a safe range of monthly payments than they were able to do five years ago," he said.