In September, all three of the key drivers of the Real House Price Index (RHPI), household income, mortgage rates, and an unadjusted house price index, increased compared with a year ago. When household income rises, consumer house-buying power increases. When mortgage rates and house prices increase, consumer house-buying power decreases. The...
First American Chief Economist Mark Fleming was interviewed on CNBC earlier this week and discussed the current dynamics at play in the housing market where rising mortgage rates have impacted both supply and demand.
Topics: Housing, In The News, Interest Rates, Affordability, Millennials
Last week, the 30-year, fixed mortgage rate hit a seven-and-a-half-year high of 4.86 percent. Most experts believe mortgage rates will continue to rise, reaching 5 percent in 2019.
Topics: Affordability, Federal Reserve, Interest Rates, Insider
Understanding the dynamics that influence consumer house-buying power, how much home one can buy based on changes in income and interest rates, provides 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...
Topics: Real House Price Index, Affordability, Insider, Interest Rates
Adjustable-rate mortgages (ARMs), a symbol of the housing market crash, are making a comeback, but their resurgence is not an indicator of a potential negative turn in the housing market. An ARM is a mortgage that typically has a 30-year repayment term, but the interest rate is fixed for the first few years of the loan. Once the fixed period...
Topics: Affordability, Interest Rates, Insider, Real House Price Index
First American Chief Economist Mark Fleming was interviewed on CNBC yesterday and discussed the impact of rising interest rates on affordability and home-buying demand.
Topics: Housing, In The News, Interest Rates, Millennials, Affordability
