Housing Market Trends

From the First American Economic Center

The First American Economic Center has you covered with in-depth analysis and expert insights on the latest data and trends in the industry.

Will Rising Mortgage Rates Trigger an 'ARMs' Race for Home Buyers?

By Mark Fleming on July 22, 2022
In May 2022, the Real House Price Index (RHPI) jumped up by 50.8 percent year over year, which is the fastest growth in the more than 30-year history of the series. This rapid annual decline in affordability was driven by a 20.1 percent annual increase in nominal house prices and a 2.3 percentage point increase in the 30-year, fixed-mortgage rate ... Read More

Interest Rates Real House Price Index Affordability

How the Fundamentals Influencing Housing Market Potential Have Changed

By Mark Fleming on July 20, 2022
The market potential for existing-home sales in June was estimated to be 5.47 million at a seasonally adjusted annualized rate (SAAR), down 2.5 percent compared to last month, and 13.1 percent lower than one year ago, which is near the same level as in early 2019. Read More

Interest Rates Potential Home Sales Tenure

Millennials Continued to Drive Homeownership Demand in 2021

By Odeta Kushi on July 6, 2022
In 2022, National Homeownership Month arrived in June as the housing market adjusts to higher mortgage rates amid still strong nominal house price appreciation, which have resulted in a significant decline in house-buying power. The housing boom of 2020 and 2021 was the exception, not the rule. Record-low mortgage rates, the ability to work from ... Read More

Housing Millennials Homeownership Progress Index Homeownership

Affordability Declines to its Lowest Level since 2007

By Mark Fleming on June 29, 2022
In April 2022, the Real House Price Index (RHPI) jumped up by 45.6 percent compared with a year ago, accelerating faster than any other point in the 30-year history of the series. This rapid annual decline in affordability was driven by two factors: a 21.2 percent annual increase in nominal house prices and a 1.9 percentage point increase in the ... Read More

Interest Rates Real House Price Index Affordability

Two Trends Slowing Housing Market Normalization

By Mark Fleming on June 20, 2022
The market potential for existing-home sales in May fell 2 percent to 5.62 million at a seasonally adjusted annualized rate (SAAR), compared with last month, and is 10.5 percent lower than one year ago. Yet, the market potential for home sales remains 2.5 percent higher than May 2019, before the pandemic hit. Read More

Interest Rates Potential Home Sales Tenure

How aggressive will the Fed need to be to get inflation under control?

By Mark Fleming on June 13, 2022
The dual mandate of the Federal Reserve is to maintain stable inflation and full employment, and while the latter goal has mostly been achieved post-pandemic, the former remains far from target. One of the primary instruments of monetary policy the Fed uses to achieve its dual mandate is controlling the federal funds rate. The Federal Open Market ... Read More

Interest Rates