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Economic Center Blog

Interview On CNBC: Explaining The Shortage Of Supply In The Housing Market And Demographic Wave Of Demand

By FirstAm Editor on August 1, 2018

First American Chief Economist Mark Fleming was interviewed yesterday on CNBC and discussed housing supply and demand, affordability and challenges facing new home builders.

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Topics: Housing, In The News, Interest Rates, Millennials, Affordability

How Millennial Home Buying Expectations Unintentionally Reduced Loan Application Defect Risk

By Mark Fleming on July 31, 2018

As the mortgage market has continued its transition away from refinances to a predominantly purchase-oriented loan market, the Loan Application Defect Index for purchase transactions has continued to decline, dropping 3.6 percent in the last month and 12.1 percent in the last year. This officially marks a six-month long decline in defect, fraud and misrepresentation and risk on purchase transactions, which have traditionally been considered higher risk.

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Topics: Fraud, Millennials, Loan Application Defect Index

Potential Homeownership Demand Unfazed By Rising Rates

By Mark Fleming on July 9, 2018

As we reflect on our country’s recent Independence Day commemoration, we find that the desire to achieve the American dream of homeownership still exists. Because, while the U.S. homeownership rate remains close to half-century lows, demand is strong, especially among millennials. In fact, results of our Real Estate Sentiment Index survey of title agents and real estate professionals conducted in the second quarter of 2018 showed nearly 87 percent of first-time home buyers were in the prime home-buying age of 26 to 35, which corresponds with the ages of millennials.

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Topics: Housing, Millennials, Homeownership Progress Index, Insider

Will First-Time Home Buyer Demand Withstand Rising Rates?

By Mark Fleming on June 12, 2018

Given the strong likelihood of rising mortgage rates in 2018, many savvy real estate market observers are curious how rising rates may impact demand, especially among millennial first-time home buyers. As part of our quarterly First American Real Estate Sentiment Index (RESI), we recently surveyed title insurance agents and real estate professionals across the nation for their perspective on how sensitive they thought first-time home buyers were to rising mortgage rates and at what rate they would withdraw from the market.

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Topics: Housing, Millennials, Real Estate Sentiment Index, Insider

Quoted On Forbes.com: Rising Rates Can Increase Housing Demand

By FirstAm Editor on June 7, 2018

First American Chief Economist Mark Fleming was quoted Tuesday in a feature article on Forbes.com, explaining how rising rates can increase housing demand.

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Topics: Housing, In The News, Interest Rates, Millennials, Affordability

Interview On CNBC: Explaining The Link Between Rising Rates, Housing Supply And Affordability

By FirstAm Editor on May 18, 2018

First American Chief Economist Mark Fleming was interviewed yesterday on CNBC and explained the link between rising rates, housing supply and affordability.

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Topics: Housing, In The News, Interest Rates, Millennials, Affordability

Busting The Myth Of The Millennial Renter Generation

By Mark Fleming on April 13, 2018

It’s a popular myth – the millennial generation is destined to be a generation of renters – avocado toast, anyone? With student loan debt burdens, the scars of the Great Recession, and limited housing supply, the myth is rooted in some real challenges for millennials. However, despite these challenges, millennials are not only interested in homeownership, they are the primary reason that the homeownership rate increased over the past year.

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Topics: Millennials, Homeownership Progress Index, Insider

What Are The Prospects For Future Homeownership Demand?

By Mark Fleming on August 17, 2017

We’ve posted the annual First American Homeownership Progress Index (HPRI), which measures how a variety of lifestyle, societal and economic factors influence homeownership rates over time at national, state and market levels. The HPRI declined 0.4 percent year-over-year, and is down 6 percent from the pre-recession peak. Potential homeownership demand is at the same level it was in 1990.

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Topics: Millennials, Homeownership Progress Index

Housing Market Faces Dilemma As Millennial Demand Continues To Grow

By Mark Fleming on June 20, 2017

First American’s proprietary Potential Home Sales model examines May 2017 data and includes analysis from First American Chief Economist Mark Fleming on how the real estate market is performing versus its potential.

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Topics: Housing, Millennials, Affordability

Can You Spring Break Into Homeownership?

By Mark Fleming on March 16, 2017

Spring break is fast approaching, that playful time of year when beach cities are inundated with college students and tourists. As housing economists, spring break is exciting because it coincides with the beginning of the spring home buying season! While we may not seem to have much in common with the college crowd, there is an underlying connection: education.

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Topics: Millennials, Education, Homeownership Progress Index, Insider