Recent Posts by Mark Fleming

Mark Fleming is the chief economist for First American Financial Corporation and leads First American’s Decision Sciences team.

National Housing Affordability Improves Annually for First Time in Post-Pandemic Era

By Mark Fleming on September 30, 2024
Key Points: National affordability improved on an annual basis for the first time since 2021. If mortgage rates ease further to 6 percent by the end of the year, income growth trends towards historical average, and nominal house price growth slows but remains positive, affordability will improve by over 7 percent by the end of the year. Industry ... Read More

Housing Interest Rates Real House Price Index Affordability

Affordability Improves for Second Straight Month, but Home Buyers Shrug

By Mark Fleming on August 26, 2024
Key Points: In July, affordability improved annually in 12 markets for the first time since 2021. Despite the improvement in affordability, the only 17 percent of consumers indicated that it’s a good time to buy a home, down from 19 percent in June, according to the Fannie Mae Home Purchase Sentiment Index (HPSI). Affordability nationally remains ... Read More

Housing Interest Rates Real House Price Index Affordability

Housing Supply Surge Improves Affordability in Some Markets

By Mark Fleming on July 29, 2024
Nationally, affordability improved modestly on a monthly basis in June, driven by slightly lower mortgage rates and positive income growth. However, on an annual basis, affordability nationally remains approximately 4 percent lower than one year ago. Two factors drove the annualized drop in affordability – a 5.6 percent annual increase in nominal ... Read More

Housing Interest Rates Real House Price Index Affordability

Affordability Crunch Likely Unchanged Through End of the Year

By Mark Fleming on July 3, 2024
Apart from the fall of 2023, affordability in May reached its lowest level in over three decades. On a year-over-year basis, affordability declined by nearly 9 percent. Two factors drove the sharp annualized drop in affordability – a 5.9 percent annual increase in nominal house prices, according to our First American Data & Analytics House ... Read More

Housing Interest Rates Real House Price Index Affordability

Affordability Challenges Prompt a House Price Slowdown

By Mark Fleming on May 28, 2024
Mortgage rates continued their spring surge in April 2024, rising to the highest level in five months and helping drag affordability down by 1.5 percent compared with March, according to the Real House Price Index (RHPI). On an annualized basis, affordability decreased by 9 percent. Two factors drove the year-over-year decline in affordability – a ... Read More

Interest Rates Real House Price Index Affordability

An Overvalued Housing Market May Be Returning

By Mark Fleming on April 29, 2024
In March 2024, mortgage rates increased and affordability fell modestly by 0.1 percent compared with February, according to the Real House Price Index (RHPI). On an annualized basis, affordability decreased by approximately 5 percent. Two factors drove the year-over-year decline in affordability – a 6.2 percent annual increase in nominal house ... Read More

Interest Rates Real House Price Index Affordability