We’ve published the findings from a new study that provides an in-depth look at the trends shaping affordability, specifically for first-time home buyers, titled “Why Everything You Know About First-Time Home Buyer Affordability is Wrong.” The study, developed by First American Chief Economist Mark Fleming and Deputy Chief Economist Odeta Kushi, ... Read More ›

Loan application defect risk for purchase transactions continued its upward trend in March, increasing 1.0 percent month-over-month, according to the Loan Application Defect Index. Defect risk for purchase transactions has risen for seven consecutive months, however, the pace of growth slowed to its lowest point over that time span. Overall, the ... Read More ›

Throughout 2018, consistent growth among three driving forces – mortgage rates, household income and unadjusted house prices – defined the housing market. These three factors are also the core elements of the Real House Price Index (RHPI). While household income rose steadily in 2018, rising mortgage rates offset any affordability benefit for home ... Read More ›

While the housing market continued to underperform its potential in March 2019, the green shoots of spring home buying have emerged. Actual existing-home sales are 2.3 percent below the market’s potential, narrowing the gap from last month, according to our Potential Home Sales model. That means the housing market has the potential to support ... Read More ›

Last year, the over-arching trend in the housing market was the impact of rising rates on affordability. Mortgage rates had been increasing since 2017 and that trend continued in 2018, especially in the second half of the year. Rates were rising largely due to a strengthening economy – the Fed raises rates in a strong economy to encourage ... Read More ›

First American Deputy Chief Economist Odeta Kushi was interviewed on Bloomberg earlier this month, providing her thoughts on macro-economic trends influencing home buyers and the housing market, including the job market and wage growth. Read More ›