Recent Updates
- Korea: Housing Price Indexes (Sep)
- Mongolia: Trade Summary (Aug)
- Markit: Flash PMIs: Japan (Sep)
- Vietnam: BOP (Q2)
- Taiwan: TIER Business Outlooks (Aug)
- more updates...
Economy in Brief
Charts of the Week (Sep 23, 2022)
Against a backdrop this week of enduring geopolitical tensions as well as the Fed's latest decision to lift interest rates...
Kansas City Fed Manufacturing Index Indicates Sluggish Factory Activity in September
The Kansas City Fed reported that its manufacturing sector business activity index fell to 1 in September...
U.S. Current Account Deficit Narrowed in Q2'22
The U.S. current account deficit narrowed to $251.1 billion during Q2'22...
U.S. Initial Unemployment Insurance Claims Rise
Initial claims for unemployment insurance rose to 213,000 (-43.9% y/y)...
FOMC Increases Funds Rate, Raises Inflation Outlook & Lowers GDP Projections
The Fed announced a 75 basis point increase in the target for the Federal funds rate...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller January 11, 2019
The National Association of Realtors reported that its Composite Index of Home Affordability declined 10.6% y/y during November to 144.0. The index was one-third below its peak in January 2013. Month-to-month, home affordability declined 2.0%.
Together, principal & interest payments of $1,117 rose m/m to 17.4% of median income from 15.5% twelve months earlier. These percentages compare to a low of 11.6% early in 2013. Higher prices helped reduced affordability during the past year. The median sales price of an existing home strengthened 5.0% y/y to $260,500. The average mortgage rate rose to 4.99% in November, up from a 3.43% low in December 2012. Growth in median family income slowed to 3.0% y/y in November from 4.0% during all of last year.
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.
| Housing Affordability | Nov | Oct | Sep | Nov Y/Y | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|
| Composite Index | 144.0 | 146.9 | 147.4 | -10.6% | 159.3 | 168.5 | 168.0 |
| Payment as a Percent of Income | 17.4 | 17.0 | 17.0 | 15.5 | 15.7 | 14.9 | 14.9 |
| Principal and Interest Payment | $1,117 | $1,092 | $1,085 | 15.2% | $967 | $880 | $849 |
| Median Sales Price (Existing Single Family Home) | $260,500 | $257,700 | $259,300 | 5.0% | $247,508 | $233,642 | $221,350 |
| Monthly Mortgage Rate | 4.99% | 4.88% | 4.77% | 4.19% | 4.20% | 3.88% | 4.03% |
| Median Family Income | $77,216 | $77,021 | $76,654 | 3.0% | $73,891 | $71,062 | $68,260 |
