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.
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...
Topics: Interest Rates, Federal Reserve, homeownership, Potential Home Sales
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...
Topics: Interest Rates, Real House Price Index, Affordability, Insider
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...
Topics: Interest Rates, Federal Reserve, homeownership, Potential Home Sales
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...
Topics: Interest Rates, Real House Price Index, Federal Reserve
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.
Topics: In The News, Interest Rates, Federal Reserve