Economic Center Blog
Welcome to the First American Economic Center Blog, a top source for the latest housing market research and analysis driven by Chief Economist Mark Fleming.

Why Lower Mortgage Rates Have Not Closed The Housing Market Performance Gap

By Mark Fleming on July 19, 2019

The housing market underperformed its potential in June 2019, as actual existing-home sales were 1.5 percent below the market’s potential. The market potential for existing-home sales increased 1.1 percent compared with May, according to our Potential Home Sales model.

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Topics: Interest Rates Federal Reserve Homeownership Potential Home Sales

Why The Housing Market Has Entered An Unprecedented Homebody Era

By Mark Fleming on June 20, 2019

The housing market outperformed its potential in May 2019. Actual existing-home sales are 0.2 percent above the market’s current potential, according to our Potential Home Sales model. Even as mortgage rates have decreased, and household income has increased, the market is underperforming compared to it’s potential from a year ago. What are the...

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Topics: Interest Rates Federal Reserve Homeownership Potential Home Sales

Why Did Housing Market Potential Improve In April?

By Mark Fleming on May 20, 2019

The housing market continued to underperform its potential in April 2019, but the performance gap shrank compared with March. Actual existing-home sales remain 1.3 percent below the market’s potential, but the performance gap narrowed from 2.0 percent last month, according to our Potential Home Sales model. That means the housing market has the...

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Topics: Interest Rates Federal Reserve Homeownership Potential Home Sales

Two Trends Boost Home-Buyer Demand As Spring Home-Buying Season Begins

By Mark Fleming on April 18, 2019

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...

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Topics: Interest Rates Federal Reserve Homeownership Potential Home Sales

How Will Low Mortgage Rates Impact Housing Affordability This Spring?

By Odeta Kushi on April 17, 2019

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...

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Topics: Interest Rates Real House Price Index Federal Reserve

Interview On Bloomberg: Discussing The Macro-Economic Trends Influencing The Housing Market

By FirstAm Editor on April 11, 2019

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.

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Topics: In The News Interest Rates Federal Reserve