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Economy in Brief
U.S. Mortgage Applications Continued to Slide Amid Higher Rates
The biggest declines have been in refinancing activity, while applications for purchase are just starting to crack...
UK Inflation Jumps
Inflation is at the highest rate since the series began in January of 1989...
U.S. Industrial Production Much Stronger than Expected in April
The increase in manufacturing output in April was once again led by motor vehicle and parts production...
U.S. Retail Sales Posted Solid Rise in April
Notwithstanding falling real incomes and declining confidence measures, consumer spending posted a solid increase...
U.S. Home Builder Index Took a Steep Drop in May
This is the fifth straight month that builder sentiment has declined...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
The Many Links of Inflation Cycle: Hard Landing Is Needed to Crack Them
Peak Inflation & Fed Policy: A Relationship Which Should Worry The Fed And Scare Investors
Why Have the Yields on TIPS Been Negative in the Past Two Years?
"Core" GDP Suggests Economy Gained Momentum in Q1:2022
by Tom Moeller May 10, 2019
The National Association of Realtors reported that its Composite Index of Home Affordability declined 2.5% during March (+0.1% y/y). Affordability stood 29.0% below the peak level during January 2013.
Together, principal & interest payments of $1,060 rose m/m to 16.4% of median income, but the percentage was the same as it was twelve months earlier. This percentage compares to a high of 18.2% last June, but was above the low of 11.6% early in 2013. The median sales price of an existing home rose 3.8% y/y to $261,100. The average mortgage rate slipped to 4.51% in March, but remained up from a 3.43% low in December 2012. Higher prices held back the affordability increase during the past year. Growth in median family income slowed to 2.6% y/y in March from 3.4% during all of last year and roughly 4.0% in the prior two years.
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 | Mar | Feb | Jan | Mar Y/Y | 2018 | 2017 | 2016 |
---|---|---|---|---|---|---|---|
Composite Index | 152.7 | 156.6 | 154.6 | 0.1% | 147.9 | 159.3 | 168.5 |
Payment as a Percent of Income | 16.4 | 16.0 | 16.2 | 16.4 | 17.0 | 15.7 | 14.9 |
Principal and Interest Payment | $1,060 | $1,033 | $1,050 | 2.4% | $1,079 | $967 | $880 |
Median Sales Price (Existing Single Family Home) | $261,100 | $252,000 | $251,200 | 3.8% | $259,458 | $247,508 | $233,642 |
Monthly Mortgage Rate | 4.51% | 4.60% | 4.76% | 4.63% | 4.72% | 4.20% | 3.88% |
Median Family Income | $77,711 | $77,644 | $77,902 | 2.6% | $76,396 | $73,891 | $71,062 |