Tag Archives: Affordability

First American’s Real House Price Index (RHPI) for February 2017 showed home prices remaining strong. The low inventory has meant that home prices have remained high. Additionally, the RHPI noted that rising wages have offset the impact of rising home prices and mortgage rates on affordability. Wages have grown by 2.8 percent in February.

Home sales should remain strong as the year goes on, even despite rising mortgage rates, tight inventory, and declining affordability. Potential existing-home sales rose 0.6 percent over the year and 83 percent over their all-time high. Wage growth, strong employment, and an uptick in building permits will encourage sales further.

With real house prices on the rise and inventory low, spring is poised to be a seller’s market, according to First American. Real home prices rose more than 8 percent over the year, with Jacksonville, Florida, seeing the most growth annually. According to First American Chief Economist Mark Fleming, “on a year-over-year basis, real house prices increase in all the metropolitan areas tracked . . .”

Higher interest rates have caused some prospective homebuyers to consider buying a smaller home or a home in a less affluent neighborhood.

With mortgage rates and home values on the rise, home buyers are expected to contribute approximately 15.8 percent of median monthly income towards their mortgage payment.

Pockets of affordable housing exist near the nation’s most expensive cities, though lower prices may come at a cost.

The data shows that adults ages 18 to 34 have a strong desire to own a home. What factors are keeping it from happening?

What factors pushed housing affordability in Q4 down to its lowest level in eight years, according to one analysis?

Low mortgage rates have offset price gains and slow wage growth. How will rising mortgage rates affect affordability?

Data shows that in the past quarter century, Americans are moving less. What factors are behind the decline, and how is it affecting mortgage originations?