Recent Updates
- US: Adv Quarterly Servies (Q2), New Residential Construction (Jul), Consumer Sentiment (Aug-Prelim)
- Finland: Government Finance (Jul)
- US: Business Leaders Survey (Aug)
- Canada: Intl Transactions in Securities (Jun)
- more updates...
Economy in Brief
U.S. Home Builder Sentiment Improves Slightly
The NAHB-Wells Fargo Composite Housing Market Index rose to 66 in August...
U.S. Retail Sales Post A Strong Increase; Nonauto Sales Surge Unexpectedly
Total retail sales rose 0.7% (3.4% y/y) during July...
U.S. Industrial Production Lower on Manufacturing and Mining
Industrial production declined 0.2% during July (+0.5% y/y)...
U.S. Productivity Growth Increases in Q2, But Downward Revisions Shift Trend
Productivity in the nonfarm business sector grew at a greater-than-expected 2.3% seasonally adjusted annual rate during Q2’19...
U.S. Business Inventories Flat and Sales Edge Up in June
Total business inventories were unchanged m/m (+5.2% y/y) in June...
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 |
