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- Singapore: International Trade Press (Apr)
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Economy in Brief
Surging Imports Send the EMU Trade Scene Deeper into Deficit
The trade balance for the Euro Area fell sharply to 17.5 billion euros in March...
U.S. Import Prices Hold Steady While Export Prices Rise in April
Import prices held steady m/m (+12.0% y/y) in April...
EMU IP Drops Month-to-Month and Year-over-Year
Industrial output among EMU members fell by 1.8% month-to-month in March...
U.S. Producer Price Inflation Moderates in April
The Producer Price Index for Final Demand increased 0.5% during April...
U.S. Housing Affordability Plunges in March
Affordable homes are in short supply...
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 April 8, 2022
• Higher prices & mortgage rates continue to drive home affordability lower.
• Principal & interest payments surge.
• Payment as a percent of income increases one percentage point m/m.
Finding an affordable home is becoming increasingly difficult. The National Association of Realtors' Fixed Rate Mortgage Housing Affordability Index fell 5.4% to 135.4 in February and has fallen 26.3% since its recent peak in January 2021. The Housing Affordability Index equals 100 when median family income equals the amount required for an 80% mortgage on a median-priced existing single-family home.
In February, a 2.0% rise (15.5% y/y) in the median sales price of a home to $363,800 was accompanied by a rise in mortgage rates to 3.83%, up from 2.86% twelve months earlier. As a result, the monthly mortgage payment rose 6.1% m/m to a record $1,361 (30.4% y/y) from $1,283 in January.
Median family income in February rose 0.4% (3.6% y/y) to $88,424 from $88,114 in January. Consequently, the standard mortgage payment as a percent of income rose to 18.5%, the highest level since August 2008. These figures are up from a recent low of 13.6% in January of 2021.
Data on Housing Affordability can be found in Haver's REALTOR database. Median home sale prices are also located in USECON. Higher frequency interest rate data can be found in SURVEYW, WEEKLY, and DAILY.
Housing Affordability | Feb | Jan | Dec | Y/Y % | 2021 | 2020 | 2019 |
---|---|---|---|---|---|---|---|
Fixed Rate Mortgage Housing Affordability Index (100+=More Affordable) | 135.4 | 143.1 | 147.1 | -20.5 | 155.8 | 172.3 | 161.3 |
Payment as a Percent of Income | 18.5 | 17.5 | 17.0 | 14.7 | 16.2 | 14.5 | 15.5 |
Principal and Interest Payment ($) | 1,361 | 1,283 | 1,242 | 30.4 | 1,182 | 1,028 | 1,044 |
Monthly Mortgage Rate (%) | 3.83 | 3.51 | 3.15 | 2.86 | 3.01 | 3.17 | 4.04 |
Median Family Income ($) | 88,424 | 88,114 | 87,683 | 3.6 | 87,965 | 84,969 | 80,808 |
Median Sales Price (Existing Single-Family Home, $) | 363,800 | 356,700 | 361,300 | 15.5 | 349,917 | 298,708 | 272,333 |