- Japan: **Japan Tokyo employment index rebased to 2015=100**
- Saudi Arabia: Non-Oil Foreign Trade (Feb); Kuwait: CPI (Mar); Tanzania: BOP, Trade, Depository Corporations Survey, Public Finance (Feb)
- Portugal: OMFIs Balance Sheet (Feb)
- Luxembourg: Employment and Unemployment (Mar)
- Kazakhstan: GDP by Income, Labor Productivity Index (Q4), Loans and Deposits, Monetary Aggregates, Banking System Surveys, Public Finance (Mar)
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Economy in Brief
Fresh Six-Year PMI Highs for Euro Area
The 'fresh six-year high' is a pleasant surprise that continues, but...
Philadelphia Fed Factory Conditions Soften
The Philadelphia Fed reported that its General Factory Sector Business Conditions Index fell to 22.0 during April...
U.S. Leading Economic Indicators Suggest Continued Expansion
The Conference Board's Composite Index of Leading Economic Indicators increased 0.4% (3.5% y/y) during March...
U.S. Initial Unemployment Insurance Applications Increase
Initial unemployment claims for unemployment insurance rose to 244,000 during the week ended April 15 (-5.1% y/y)...
Japan's 'Trade Trends' Stabilize on an Unstable Foundation
Japan trade trends, broadly considered, seem to be stabilizing...
U.S. Mortgage Loan Applications Fall
The MBA total Mortgage Applications Volume Index declined 1.8% last week (-24.9% y/y)...
by Tom Moeller February 10, 2016
The National Association of Realtors reported that the Composite Index of Home Affordability declined 3.4% during December (-5.4% y/y). For all of 2015, affordability eased 1.1% following a 6.3% drop in 2014. During the last ten years, there has been a 62% correlation between the affordability index level and the y/y change in new plus existing single-family home sales.
Mortgage payments as a percent of income rose slightly to 15.5% by the end of last year. A 2.1% rise in home prices during December caused the erosion in home affordability. Full-year home prices showed strength for the fourth straight year, rising 6.9% in 2015. The average mortgage rate nudged up in December to 4.14% though the full-year average of 4.03% was below the 4.30% averaged in 2014.
The Housing Affordability Index equals 100 when median family income qualifies for an 80% mortgage on a median priced existing single-family home. A rising index indicates more buyers can afford to enter the home-buying market. Data on Home Affordability can be found in Haver's REALTOR database. Interest rate data can be found in the WEEKLY and DAILY databases.
The Monetary Policy Report from the Federal Reserve Board can be found here.
|Housing Affordability||Dec||Nov||Oct||Dec Y/Y||2015||2014||2013|
|Median Sales Price (Existing Single Fam. Home)||$226,000||$221,400||$220,600||8.0%||$221,442||$207,125||$195,933|
|Monthly Mortgage Rate||4.14%||4.01%||4.05%||4.2%||4.03%||4.30%||4.00%|
|Principal and Interest Payment||$878||$847||$848||7.7%||$849||$820||$750|
|Median Family Income||$68,163||$68,074||$67,865||1.9%||$67,507||$65,910||$64,030|
|Payment as a Percent of Income||15.5||14.9||15.0||14.6||15.1||14.9||14.0|