Two of the three key drivers of the Real House Price Index (RHPI), household income and mortgage rates, swung in favor of increased affordability in June. The 30-year, fixed-rate mortgage fell by 0.8 percentage points and household income increased 2.4 percent compared with June 2018. When household income rises, consumer house-buying power ... Read More ›

The housing market essentially reached its potential in July 2019, as actual existing-home sales were 0.05 percent above the market’s potential. Existing-home sales in 2019 are running at a pace similar to 2015, even though rates have fallen and household income has increased this year. Housing market potential benefitted from a 10.6 percent ... Read More ›

This month, the Loan Application Defect Index for purchase transactions continued its downward trend, declining 7.8 percent in June compared with the month before, the third consecutive month defect risk in purchase transactions has fallen. The Defect Index for refinance transactions also fell 6.5 percent compared with the previous month. The ... Read More ›

Later this week, the Federal Open Market Committee (FOMC) will convene and likely announce a rate cut, according to experts. The first Fed rate cut since December 2008 will trigger industry and media speculation about mortgage rates declining further. While changes to the federal funds rate don't directly influence mortgage rates, a rate cut will ... Read More ›

The housing market underperformed its potential in June 2019, as actual existing-home sales were 1.5 percent below the market’s potential. The market potential for existing-home sales increased 1.1 percent compared with May, according to our Potential Home Sales model. Read More ›

Ten years after the Great Recession, homeownership remains one of the main tenets of the American Dream. Amid the recovery from the housing crisis, the homeownership rate hit a generational low of 63 percent in 2016, but it has been steadily rising since. What’s behind the steady rise since the 2016 low point? The explanation lies in the shifts in ... Read More ›