- 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)
- Uruguay: GDP (Q4)
- more updates...
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 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|