Please recommend an affordable wool or wool blend yarn?

I wash wool all the time, in very hot water with soap. I wash it right off the sheep, after I spin it, after I knit it. I don't have a problem with felting. You have to learn to keep your hands off it! It's the touching, rubbing that felts wool.. not washing it.

You are not going to find any good yarn at Hobby Lobby or Joann's either. They will have more of the same acrylic. You may find some sock yarn with 75% wool at Michael's, but that is limited. Find yourself a real yarn store and get the very best. There are many online stores now too that carry beautiful yarns. Try knitpicks or elan. It will make your work so much nicer.

But you know that crochet doesn't stretch much at all. It is not supposed to. Knitting has more stretch, if that is what you want. You can try using a larger hook, and loosen up on your tension somewhat as well. Some stitches will have more stretch than others.

Be sure you are using crochet yarn... knitting yarn is made a little differently and may not work as well for you.

100% wool will felt - make sure you buy a superwash wool if you need something washable. I believe Walmart is now carrying Vanna's yarn. Take a look at her yarn, you might also try using a larger size crochet hook. Acrylic yarn will stretch; it could be you are crocheting to tight and the larger size will loosen up your stitches and make it more stretchy.