The many twists and turns of the housing market over the last few years have made it difficult to contextualize current housing market conditions, especially as recency bias anchors us to the housing market of 2020 and 2021, which was anything but normal. Mortgage rates hit historic lows during these years yet have since increased to the highest ...
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Two of the three key drivers of the Real House Price Index (RHPI), nominal house prices and mortgage rates, dragged affordability lower in June. The 30-year, fixed mortgage rate increased by 0.3 percentage points and nominal house prices accelerated by 0.8 percent compared with May. While household income increased by 0.4 percent, it was not ...
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Our Potential Home Sales Model, which measures what a healthy market for home sales should be based on the economic, demographic and housing market environments, increased by 1 percent in July, but remains nearly 2 percent lower than one year ago. The yearly decline in market potential was the smallest since February 2022. The steep decline in ...
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What defines a housing recession? While some rules of thumb exist, there has never been general agreement on a definition. If you look at today’s housing market, existing-home sales have struggled to gain any momentum during what is usually the housing market’s busiest season. New home sales, on the other hand, have exceeded all expectations. So, ...
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In May, housing affordability fell relative to one month ago, as two of the three key drivers of the Real House Price Index (RHPI), nominal house prices and mortgage rates reduced house-buying power by 0.7 percent. Nominal house price growth ticked up 0.6 percent compared with one month ago, while the average 30-year, fixed mortgage rate increased ...
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Our Potential Home Sales Model, which measures what a healthy market for home sales should be based on the economic, demographic and housing market environments, decreased modestly in June, and remains 2.8 percent lower than one year ago. Mortgage rates have risen substantially since the spring of 2022, and higher rates have a dual impact on sales ...
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