WASHINGTON Tentative signs of life are appearing in the long-battered U.S. housing market.

Thanks to historically low mortgage rates and deeply discounted prices, homes in much of the country are now the most affordable in decades. First-time homebuyers are now able to take advantage of a new $8,000 tax credit that runs until Dec. 1.

Still, any recovery for the spring selling season is likely to be modest. And it could evaporate if the economy, already mired in a severe recession, deteriorates much more.

If buyers return, it would be a great relief to stressed homeowners like Jennifer Folkerson, 42, who lives outside Salt Lake City. She and her family moved to a new home last fall but have had no luck selling the old one. Saddled with two mortgages, she now has both houses up for sale.

"There have been tons of lookers," she said, but "not one single person who can get approved for a loan right now."

Because of falling home prices and mortgage rates of around 5 percent or lower, homeownership is more affordable than it has been since at least 1970, the National Association of Realtors said Wednesday.

Tens of thousands of homes are tied up in foreclosure and will be coming on the market.