Recent Updates
- New Zealand: Economic Survey of Manufacturing (Q3)
- China: International Trade (Nov)
- US: Consumer Credit, Wholesale Trade (Oct), Consumer Sentiment (Dec-
- more updates...
Economy in Brief
U.S. Consumer Credit Usage Accelerates
Consumer Credit Outstanding increased $18.90 billion (4.8% y/y during October...
U.S. Wholesale Inventories Edge Up While Sales Slump
Wholesale inventories edged up 0.1% m/m (+3.8% y/y) in October...
U.S. Trade Deficit Shrinks as Imports Fall Sharply
The U.S. trade deficit in goods and services declined to $47.20 billion during October...
U.S. Factory Sector Orders Increase; Inventory Growth Decelerates
Factory orders improved 0.3% (-1.2% y/y) during October...
U.S. Initial Claims for Unemployment Insurance Fall to 7-Month Low
Initial claims for unemployment insurance fell 10,000 to 203,000 (-11.4% y/y) during the week ending November 30...
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 |
