Why the Share of Rent-Burdened Households Has Declined in the Post-Recession Era

By Odeta Kushi on March 2, 2020
After nearly 20 years of rising rents, renter affordability, or the lack thereof, is a hot topic in housing. The long-running increase in rents has fueled a rise in the share of rent-burdened households, defined by the Department of Housing and Urban Development (HUD) as households that spend over 30 percent of their income on rent. Read More

Affordability Renter Affordability

Where Wages Grow, Affordability Follows

By Mark Fleming on February 24, 2020
As 2019 came to a close, potential home buyers received a year-end gift as affordability improved relative to one year ago. Two of the three key drivers of the Real House Price Index (RHPI), household income and mortgage rates, swung in favor of increased affordability in December. Read More

Interest Rates Real House Price Index Affordability

The Five Cities Where Affordability Improved the Most

By Mark Fleming on January 27, 2020
Once again, home buyers benefitted from a year-over-year affordability boost as two of the three key drivers of the Real House Price Index (RHPI), household income and mortgage rates, swung in favor of increased affordability in November. Compared with November 2018, the 30-year, fixed-rate mortgage fell by 1.2 percentage points and household ... Read More

Interest Rates Real House Price Index Affordability

What Global Uncertainty Means for the Housing Market

By Mark Fleming on January 10, 2020
Global events and uncertainty, such as the conflict between the U.S. and Iran, clearly impacts geopolitical relations, but also impacts the U.S. economy, and more specifically, the U.S. housing market. How? Against a backdrop of uncertainty, investors worldwide look for a safe place to put their money. U.S. bonds, backed by the full faith and ... Read More

Interest Rates Real House Price Index Federal Reserve Affordability

Interviews on CNBC and Yahoo! Finance: 2020 Housing Outlook – Why Persistently Low Mortgage Rates May Help and Hurt Home Buyers

By FirstAm Editor on December 23, 2019
First American Chief Economist Mark Fleming was interviewed on CNBC and Yahoo! Finance last week, discussing the 2020 outlook for the housing market and how persistently low mortgage rates may both help and hurt home buyers in the year ahead. Read More

Housing In The News Interest Rates Affordability

What Will Drive House-Buying Power in 2020?

By Mark Fleming on December 20, 2019
Affordability improved in October as two of the three key drivers of the Real House Price Index (RHPI), household income and mortgage rates, modestly swung in favor of increased affordability relative to one year ago. The 30-year, fixed-rate mortgage fell by 1.1 percentage points and household income increased 2.6 percent compared with October ... Read More

Interest Rates Real House Price Index Affordability