- 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)
- more updates...
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 April 8, 2016
The National Association of Realtors reported that the Composite Index of Home Affordability increased 2.2% m/m to 174.9 in February following a 5.4% January gain. Nevertheless, the index remained down 3.5% versus 12-months earlier. 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 eased to 14.3% in February, down from a 16.2% high last July. A lower 4.04% mortgage rate accounted for much of the improvement, down from 4.54% at the beginning of 2014. A 1.2% m/m decline in home prices also fostered home affordability, though prices were up 4.3% y/y. Affordability was further enhanced by a 2.1% y/y rise in median family income. That rate of gain was down from its 3.3% peak at the end of 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 National and Local Economic Outlook: An Update is the title of today's speech by William C. Dudley, New York Federal Reserve Bank President & CEO, and it can be found here.
|Housing Affordability||Feb||Jan||Dec||Feb Y/Y||2015||2014||2013|
|Median Sales Price (Existing Single Family Home)||$212,300||$214,800||$224,900||4.3%||$221,350||$207,125||$195,933|
|Monthly Mortgage Rate||4.04%||4.12%||4.14%||3.92%||4.03%||4.30%||4.00%|
|Principal and Interest Payment||$815||$832||$874||5.8%||$849||$820||$750|
|Median Family Income||$68,405||$68,379||$68,163||2.1%||$67,507||$65,910||$64,030|
|Payment as a Percent of Income||14.3||14.6||15.4||13.8||15.1||14.9||14.0|