Despite the housing slump, most middle income workers still don't earn enough to buy a median-priced home in their hometowns, according to the Center for Housing Policy.

The center, an arm of the affordable housing advocacy group the National Housing Conference (NHC), compared housing costs in 201 metro areas with the median wages in those areas for 60 major vocations, like police, fireman and teachers. 

Although home prices fell in 161 of those markets in the 12 months ending September 30, 2007 according to the study, home costs were still too high for typical working people in most markets.

At the same time, mortgage interest rates have declined.  In July, the 30-year fixed rate averaged 6.7 percent, according to Freddie Mac.  Recently, it hit 5.48 percent, slashing mortgage payments by about $160 a month on a $200,000 loan.