The three key drivers of the Real House Price Index (RHPI) are household income levels, the 30-year, fixed mortgage rate, and the unadjusted house price index. Changes to household income levels and the 30-year, fixed mortgage rate are considered together as consumer house-buying power. When household income rises and/or the mortgage rate falls, ... Read More ›

In June, the housing market continued to underperform its potential. Actual existing home sales are 4.2 percent below the market potential for home sales, according to our Potential Home Sales model, which estimates the expected level of existing-home sales based on market fundamentals. The market for existing-home sales is underperforming its ... Read More ›

Yesterday’s Census Bureau report on housing construction bodes well for home buyers, as the pace of housing completions increased 2.2 percent over last year. The continued year-over-year growth in completions means more homes on the market in the short-term, offering some immediate relief in alleviating housing supply shortages. Read More ›

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 ... Read More ›

By now, everyone in the mortgage industry is aware that we are entering a market that will be dominated by purchase demand for the next several years. According to the latest Mortgage Bankers Association forecast, refinance transactions will make up 28 percent of total mortgages originated in 2018 and is forecasted to drop to 23 percent by 2020. ... Read More ›

The Real House Price Index (RHPI) views house prices in relation to consumer house-buying power, incorporating household income, mortgage rates, and an unadjusted house price index. When incomes rise, consumer house-buying power increases. When mortgage rates or house prices rise, consumer house-buying power declines. Read More ›