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 April. The 30-year, fixed-rate mortgage fell by 0.33 percentage points and household income increased 2.7 percent compared to April 2018. When household income rises, consumer house-buying power ... Read More ›

Faced with often misleading affordability metrics and seemingly challenging housing market dynamics, many renters may underestimate their house-buying power and the supply of homes in their market that they can afford. Potential first-time home buyers can benefit from a more targeted examination of affordability, which begins by accurately ... Read More ›

In our most recent Potential Home Sales Model analysis, we noted that the housing market’s potential improved in April because falling mortgage rates and rising household income combined to increase consumer house-buying power more than enough than to offset house price appreciation. In other words, house-buying power won the tug of war with house ... Read More ›

First American Chief Economist Mark Fleming was interviewed on Yahoo! Finance and Deputy Chief Economist Odeta Kushi on Nightly Business Report earlier this week and discussed the existing-home sales data for April, the housing supply squeeze and the market forces helping affordability. Read More ›

First American Chief Economist Mark Fleming was interviewed on FOXBusiness and CNBC on Tuesday and discussed the outlook for the housing market and broader economy as well as the impact of tax law changes on housing. Read More ›

Enacted in 2017, the Tax Cuts and Jobs Act reduced tax breaks for homeowners. At the time, many in the real estate industry expected the changes to negatively impact the housing market, particularly in high-priced neighborhoods. The industry concern primarily focused on two specific changes included in the bill: the mortgage interest deduction was ... Read More ›