Recent Updates
- US: Wholesale Trade (Feb), Producer Prices (Mar)
- US: Producer Price Indexes by Commodity Detail (Mar)
- US: Producer Price Indexes by Industry Detail (Mar)
- Canada: Investment in Building Construction (Feb), Labor Force Survey (Mar)
- more updates...
Economy in Brief
U.S. Wholesale Inventories Post Strong February Gain; Sales Fall
Wholesale inventories increased 0.6% (2.0% y/y) during February...
U.S. Initial Unemployment Insurance Claims Unexpectedly Increase
Initial claims for unemployment insurance rose to 744,000 during the week ended April 3...
Total PMIs Gain Traction in March
The PMI readings for March show improvement again...
U.S. Consumer Credit Outstanding Bounces Back in February
Consumer credit outstanding surged $27.6 billion during February...
U.S. Trade Deficit Widens to Record during February
The U.S. trade deficit in goods and services widened to $71.1 during February...
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 |
