Recent Updates
- US: Job Openings & Labor Turnover Survey (May)
- Composite PMIs: Hong Kong, Egypt, US (Jun)
- US: US Sector PMI (Jun)
- Palestine: Central Bank Balance Sheet, Official Reserve Assets (Jun)
- more updates...
Economy in Brief
Composite PMIs Step Back But Most Still Show Expansion
The S&P global composite PMIs took a turn for the worse in June...
U.S. ISM Manufacturing Index Falls Back in June to the Lowest Level in Two Years
The ISM U.S. manufacturing PMI fell to 53.0 in June...
U.S. Construction Spending Unexpectedly Dips in May After Seven Straight Monthly Rises
The value of construction put-in-place ticked down 0.1% m/m (+9.7% y/y) in May...
Developed Economies Manufacturing Sectors Hit Hard in June
Among the 18 countries in the table that report manufacturing PMI data in June, only four show m/m improvements...
U.S. Income Gained, Spending Slowed in May
Personal income growth remained solid while household spending slowed in May...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller January 18, 2021
• Declines in home prices & interest rates boost buying power.
The National Association of Realtors reported that its Fixed Rate Mortgage Housing Affordability Index rose 0.7% (-0.7% y/y) to 168.2 in November from 167.0 in October, revised from 167.2. Despite the increase, affordability remained 7.9% below its April high.
Declines amongst index components were widespread in November. Payments as a percent of income slipped to 14.9% from 15.0% as principal & interest payments declined 1.5% (+2.4% y/y) to $1,040. The effective mortgage interest rate declined to a record low of 2.82% in November (figures date back to 1981). The median sales price eased 0.7% (+15.1% y/y) to $315,500 from October's record high of $317,800. These declines offset a 0.8% fall (+1.7% y/y) in median family income to $83,977.
The Housing Affordability Index equals 100 when median family income qualifies for an 80% mortgage on a median-priced existing single-family home. A rising index indicates an increasing number of buyers can qualify for a mortgage to purchase the median-priced home. Data on Home Affordability can be found in Haver's REALTOR database. Median sales prices are located in USECON. Higher frequency interest rate data can be found in SURVEYW, WEEKLY, and DAILY.
Housing Affordability | Nov | Oct | Sep | Y/Y% | 2019 | 2018 | 2017 |
---|---|---|---|---|---|---|---|
Fixed Rate Mortgage Housing Affordability Index (100+=More Affordable) | 168.2 | 167.0 | 167.4 | -0.7 | 161.1 | 147.9 | 159.1 |
Payment as a Percent of Income | 14.9 | 15.0 | 14.9 | 14.8 | 15.5 | 17.0 | 15.7 |
Principal and Interest Payment ($) | 1,040 | 1,056 | 1,059 | 2.4 | 1,044 | 1,079 | 967 |
Monthly Mortgage Rate (%) | 2.82 | 2.88 | 2.95 | 3.75 | 4.04 | 4.72 | 4.20 |
Median Family Income ($) | 83,977 | 84,672 | 85,100 | 1.7 | 80,704 | 76,401 | 73,891 |
Median Sales Price (Existing Single-Family Home, $) | 315,500 | 317,800 | 316,000 | 15.1 | 272,333 | 259,458 | 247,508 |