- **Switzerland's CPI Rebased to 2015=100 (Jan)**
- **Netherland's CPI & HICP rebased to 2015=100 (Jan)**
- Palestine: Labor Force Survey (Q4); Namibia: CPI (Jan); South Africa: Trade Conditions Survey (Jan), Mining & Manufacturing Production (Dec); Turkey: BOP (Dec); Qatar: CPI (Jan); Jordan: CPI (Jan); Israel: Foreign Trade (Jan)
- Slovenia: Job Vacancies (Q4); Slovakia: Construction, IP (Dec); Estonia: Flash GDP (Q4), Accounts of the Central Bank (Jan); Hungary: CPI, Fuel Prices (Jan); Russia: Housing Loans (Dec)
- more updates...
Economy in Brief
U.S. Budget Surplus Develops
The U.S. Treasury Department reported a $55.2 billion budget surplus during January versus a $17.5 billion deficit twelve months earlier...
U.S. Wholesale Inventories and Sales Ease
Inventories at the wholesale level ticked 0.1% lower (+1.8% y/y) during December...
French and Italian IP Both Drop
December is showing weak industrial output in the euro area...
U.S. JOLTS: Job Openings Rate Increases to Record High
The job market improved greatly last year...
U.S. Energy Prices Move Lower
Gasoline prices continued to decline last week and remained at the lowest level since January 2009...
U.S. Small Business Optimism Deteriorates to Two-Year Low
The NFIB Small Business Optimism Index declined 1.4% during January to 93.9 following a 0.7% December rise...
by Tom Moeller February 10, 2016
The National Association of Realtors reported that the Composite Index of Home Affordability declined 3.4% during December (-5.4% y/y). For all of 2015, affordability eased 1.1% following a 6.3% drop in 2014. During the last ten years, there has been a 62% correlation between the affordability index level and the y/y change in new plus existing single-family home sales.
Mortgage payments as a percent of income rose slightly to 15.5% by the end of last year. A 2.1% rise in home prices during December caused the erosion in home affordability. Full-year home prices showed strength for the fourth straight year, rising 6.9% in 2015. The average mortgage rate nudged up in December to 4.14% though the full-year average of 4.03% was below the 4.30% averaged in 2014.
The Housing Affordability Index equals 100 when median family income qualifies for an 80% mortgage on a median priced existing single-family home. A rising index indicates more buyers can afford to enter the home-buying market. Data on Home Affordability can be found in Haver's REALTOR database. Interest rate data can be found in the WEEKLY and DAILY databases.
The Monetary Policy Report from the Federal Reserve Board can be found here.
|Housing Affordability||Dec||Nov||Oct||Dec Y/Y||2015||2014||2013|
|Median Sales Price (Existing Single Fam. Home)||$226,000||$221,400||$220,600||8.0%||$221,442||$207,125||$195,933|
|Monthly Mortgage Rate||4.14%||4.01%||4.05%||4.2%||4.03%||4.30%||4.00%|
|Principal and Interest Payment||$878||$847||$848||7.7%||$849||$820||$750|
|Median Family Income||$68,163||$68,074||$67,865||1.9%||$67,507||$65,910||$64,030|
|Payment as a Percent of Income||15.5||14.9||15.0||14.6||15.1||14.9||14.0|