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- Russia: Energy Statistics (Jun), GDP By Expenditure (Q1-Press)
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Economy in Brief
U.S. Factory Orders and Shipments Rebounded in May
Factory orders rebounded in May, rising 8.0% m/m...
U.S. Trade Deficit Widened Further in May
The foreign trade deficit in goods and services widened further in May...
State & Pandemic Assistance Initial Claims at 2.3 Million
State initial jobless claims decreased to a still extremely-elevated 1.427 million in the week ending June 27...
U.S. Light Vehicle Sales Improve In June
Car & light truck sales continue to increase m/m, but remain off 23.7% y/y...
EMU Unemployment Ticks Higher
The EMU unemployment rate ticked higher to 7.4% in May...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller August 7, 2019
The National Association of Realtors reported that its Fixed Rate Mortgage Housing Affordability Index improved 1.3% to 151.9 during June (10.3% y/y) after falling 1.6% in May. Despite the increase, affordability remained 28.8% below the peak level during January 2013.
The affordability increase occurred in June as principal & interest payments eased m/m to 16.5% of median income from 16.7% in May. The percentage remained below its 18.2% peak in June 2018, but above the low of 11.6% in January 2013. Payments were pulled lower as the average mortgage interest rate declined to 3.84% in June from 4.11% in May and was sharply below December's high of 4.99%. Monthly principal & interest payments fell slightly to $1,082 per month. The median sales price of an existing home rose 4.5% y/y to $288,900. Growth in median family income picked up to 3.5% y/y in June from 3.4% 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 | Jun | May | Apr | Jun Y/Y | 2018 | 2017 | 2016 |
|---|---|---|---|---|---|---|---|
| Fixed Rate Housing Affordability Index | 151.9 | 150.0 | 152.5 | 10.3% | 147.8 | 159.1 | 167.7 |
| Payment as a Percent of Income | 16.5 | 16.7 | 16.4 | 18.2 | 17.0 | 15.7 | 14.9 |
| Principal and Interest Payment | $1,082 | $1,087 | $1,065 | -6.2% | $1,079 | $967 | $880 |
| Median Sales Price (Existing Single Family Home) | $288,900 | $280,900 | $269,100 | 4.5% | $259,458 | $247,508 | $233,642 |
| Monthly Fixed Mortgage Rate | 3.84% | 4.11% | 4.30% | 4.74% | 4.72% | 4.20% | 3.88% |
| Median Family Income | $78,916 | $78,238 | $77,944 | 3.5% | $76,396 | $73,891 | $71,062 |
