Recent Updates
- US: International Trade (May)
- NY Fed Global Supply Chain Pressure Index (Jun)
- Pakistan: Consumer Confidence Survey (Jul)
- Vietnam: Customs Trade (Jun)
- Pakistan: Business Confidence Survey (Jun)
- more updates...
Economy in Brief
U.S. ISM Services PMI Falls in June to the Lowest Level since May '20
The U.S. ISM Services PMI fell to 55.3 in June...
May JOLTS: Openings, Hiring Slipped, Separations Edged Up
Job openings fell 427,000 in May to 11.254 million...
Euro Area Retail Sales Remain Weak
The graph shows the clear trend of euro area retail sales...
U.S. Factory Orders Rise More Than Expected in May
Total factory orders rose 1.6% m/m (14.0% y/y) in May...
Composite PMIs Step Back But Most Still Show Expansion
The S&P global composite PMIs took a turn for the worse in June...
Viewpoints
Commentaries are the opinions of the author and do not reflect the views of Haver Analytics.
by Tom Moeller September 10, 2021
• Mortgage payments slip with lower prices.
• Interest rates ease.
• Family income improves.
The National Association of Realtors' Fixed Rate Mortgage Housing Affordability Index rose 2.7% during July (-11.9% y/y) to 150.4 following four declines in the prior five months. Affordability has fallen, nevertheless, 19.9% since its January high. A Housing Affordability Index of 100 indicates that a family earning the median income qualifies for an 80% mortgage on a median-priced existing single-family home. This index has been above 100 in each month since July 1990, reaching its all-time high of 213.3 in January 2013.
Affordability improved during July as the median sales price of a home eased 0.8% (+18.6% y/y) to $367,000. The effective mortgage rate also fell to 2.92% from 3.03%. It reached a high of 4.99% late in 2018. That lowered principal & interest payments to $1,225 per month (+16.1% y/y) and 16.6% of income.
Family income edged 0.4% higher (2.3% y/y) to $88,457 but it remained 2.9% below the January high.
Data on Housing Affordability can be found in Haver's REALTOR database. Median home sale prices also are located in USECON. Higher frequency interest rate data can be found in SURVEYW, WEEKLY, and DAILY.
Housing Affordability | Jul | Jun | May | Y/Y % | 2020 | 2019 | 2018 |
---|---|---|---|---|---|---|---|
Fixed Rate Mortgage Housing Affordability Index (100+=More Affordable) | 150.4 | 146.5 | 152.3 | -11.9 | 172.3 | 161.3 | 147.9 |
Payment as a Percent of Income | 16.6 | 17.1 | 16.4 | 14.6 | 14.5 | 15.5 | 17.0 |
Principal and Interest Payment ($) | 1,225 | 1,253 | 1,205 | 16.1 | 1,028 | 1,044 | 1,079 |
Monthly Mortgage Rate (%) | 2.92 | 3.03 | 3.01 | 3.08 | 3.17 | 4.04 | 4.72 |
Median Family Income ($) | 88,457 | 88,139 | 88,067 | 2.3 | 84,969 | 80,808 | 76,401 |
Median Sales Price (Existing Single-Family Home, $) | 367,000 | 370,100 | 356,800 | 18.6 | 298,708 | 272,333 | 259,458 |