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.

What Do Rising Rates and Tenure Length Mean for Housing Market Potential in 2020?

By Mark Fleming on November 20, 2019
In October 2019, the housing market exceeded its potential, as actual existing-home sales exceeded market potential by 4.6 percent, or an estimated 239,000 seasonally adjusted annualized sales. Housing market potential decreased relative to last month, but increased 0.6 percent compared with October of last year. Read More

Interest Rates Potential Home Sales Tenure

Why the Time May Be Right for New Home Construction to Accelerate

By Odeta Kushi on November 8, 2019
Thus far in 2019, the story of the housing market has been a tale of strong housing demand and limited supply. On the demand side, steadily rising house-buying power has fueled greater demand. Falling mortgage rates and rising household income sparked a nearly 12.6 percent increase in house-buying power year to date through September. The impact ... Read More

Housing New Home Buying Housing Starts Housing supply

Why Has Defect Risk Reached a Multi-Year Low Point?

By Mark Fleming on October 31, 2019
Declining for the sixth consecutive month, the Loan Application Defect Index for purchase transactions fell 2.6 percent in September compared with August. The Defect Index for refinance transactions also fell, declining 4.5 percent compared with the previous month. The overall Defect Index, which includes both purchase and refinance transactions, ... Read More

Fraud Loan Application Defect Index

The Dynamic Forces that Re-Shaped Housing Affordability in 2019

By Mark Fleming on October 28, 2019
Understanding the dynamics that influence consumer house-buying power, how much home one can buy based on changes in income and interest rates, provides a helpful perspective on the housing market. When incomes rise, consumer house-buying power increases. When mortgage rates or nominal house prices rise, consumer house-buying power declines. Our ... Read More

Interest Rates Real House Price Index Affordability

What’s the Outlook for Housing Market Potential for the Rest of 2019?

By Mark Fleming on October 18, 2019
In September 2019, the housing market performed to its potential, as actual existing-home sales were a marginal 0.04 percent, or an estimated 2,340 seasonally adjusted annualized sales, below market potential. Housing market potential decreased relative to last month, but increased 3.8 percent compared with September of last year. Indeed, in ... Read More

Interest Rates Potential Home Sales Tenure

Why Our Economy Is Generating More Investment Growth in IP than IT

By Odeta Kushi on October 16, 2019
Important, but easy to overlook shifts in investment trends may be contributing to our current era of low interest rates. An excess supply of global savings relative to the demand for that money for investments is driving down interest rates, which can be thought of as the price of money. The neutral rate of interest, which is monitored by the ... Read More

Interest Rates Federal Reserve