- New Zealand: International Trade (Feb)
- Korea: Consumer Survey Index (Mar); Philippines: Public Finance (Jan)
- Weekly: **Initial Claims Data Revisions Completed**
- Euro area: Flash Consumer Confidence Indicator (Mar)
- US: New Residential Sales (Feb)
- Belgium: Business Survey (Mar)
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Economy in Brief
Kansas City Federal Reserve Factory Index Strengthens; Expectations Surge
The Kansas City Fed reported that its index of regional manufacturing sector business activity increased to 20 during March...
U.S. Initial Unemployment Insurance Claims Rise
Initial claims for unemployment insurance increased to 258,000 (-3.0% y/y) during the week ended March 18...
U.K. Retail Looks Less Bulletproof
For the most part, the assessments embodied in the March survey from the UK's CBI are being taken as being upbeat...
U.S. Existing Home Sales Fall to Five-Month Low; Inventory Remains Tight
Sales of existing single-family homes declined 3.7% (+5.4% y/y) to 5.480 million units (AR) during February...
U.S. FHFA House Price Index Momentum Diminishes
The FHFA U.S. house price index remained unchanged during January following a 0.4% December increase ...
Japan's Trade Trends Turn Sharply Higher
Japan has logged its largest current account surplus since April 2010...
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|