Housing market potential in 2023 will remain largely dependent on the path of mortgage rates, which will be heavily influenced by inflation. In November 2022, housing market potential increased by 2.5 percent relative to October, boosted by a slight month-over-month decline in mortgage rates. Even with the modest monthly increase in housing market ...
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In September 2022, the Real House Price Index (RHPI) jumped up by 60.6 percent on an annual basis. This rapid annual decline in affordability was driven by two factors – a 13.5 percent annual increase in nominal house prices and a 3.2 percentage point increase in the average 30-year, fixed mortgage rate compared with one year ago. Even though ...
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In October 2022, housing market potential fell by nearly 4 percent relative to last month and dropped 21 percent compared with October of last year, a decline of 1,334,000 potential existing-home sales. The steep annual decline in market potential was largely a result of higher mortgage rates, which discourage both buyers and sellers from jumping ...
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The pandemic brought about both policies to protect homeowners from losing their homes – foreclosure moratoriums and forbearance programs – and concerns that a wave of foreclosures would crash upon the housing market once the protections ended. The wave did not materialize, and foreclosures remain near historic lows. Now, the Federal Reserve is ...
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Affordability continued its rapid decline in August 2022, as the Real House Price Index (RHPI) soared 49 percent on an annual basis. The ongoing and swift decline in affordability was driven by a 15 percent increase in nominal house prices and a 2.4 percentage point increase in the 30-year, fixed mortgage rate compared with one year ago. As ...
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Housing market potential sagged to its lowest point since May 2020 in September, falling 3.6 percent from August to an estimated 5.38 million at a seasonally adjusted annualized rate (SAAR). Year over year, the market potential for existing-home sales is down 16.7 percent. Market dynamics and the broader economic outlook have changed dramatically ...
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