Economic Center Blog
Welcome to the First American Economic Center Blog, a top source for the latest housing market research and analysis driven by Chief Economist Mark Fleming.

Why Mortgage Rates Hold the Key to Improved Affordability in 2023

By Ksenia Potapov on February 3, 2023

By all respects, 2022 was a tumultuous year for the housing market. Annual house price appreciation remained at a double-digit pace for most of the year, mortgage rates increased by nearly 4 percentage points in less than 12 months and, as a result, af... Read More›

Interest Rates Real House Price Index Affordability

House Prices Declining Fastest in Overvalued Markets

By Mark Fleming on January 31, 2023

In November 2022, the Real House Price Index (RHPI) increased by 60 percent on an annual basis. This rapid annual decline in affordability was driven by two factors -- a 7.6 percent annual increase in nominal house prices and a... Read More›

Interest Rates Real House Price Index Affordability

What Do Fewer Multifamily Transactions and Greater Pricing Uncertainty Mean for Cap Rates?

By Xander Snyder on January 27, 2023

Slowing demand to lease apartments is now reducing demand to own multifamily properties. Read More›

Commercial Real Estate Interest Rates Potential Cap Rate Model

The REconomy Podcast™: Is the New-Home Market Over-Supplied?

By FirstAm Editor on January 26, 2023

In this episode of the REconomy Podcast™ from First American, Chief Economist Mark Fleming and Deputy Chief Economist Odeta Kushi explain why new homes are making up a growing share of the overall supply of available homes for sale in the U.S. and what... Read More›

Housing Interest Rates Affordability REconomy

Why Housing Market Potential Increased for the Second Straight Month

By Mark Fleming on January 20, 2023

Housing market potential closed 2022 on a two-month upswing, increasing by 3.0 percent relative to November. Despite the second consecutive month-over-month uptick, housing market potential remained down 17 percent compared with December of last year, ... Read More›

Interest Rates Potential Home Sales tenure

CRE X-Factor: Watch CMBS Maturities for Early Indications of Risk

By Xander Snyder on January 18, 2023

Since Commercial Mortgage-Backed Securities (CMBS) are actively traded, their prices fluctuate more than other types of commercial debt as interest rates move. Given this interest rate sensitivity, CMBS provide insight into ... Read More›

Commercial Real Estate Interest Rates