- Korea: Housing Price Index (Apr)
- US: Consumer Sentiment (Apr-final), GDP (Q1 Adv), ECI (Q1)
- Consumer Sentiment Detail (Apr-final)
- US: Selected NIPA Tables (Q1-Adv), Summary key Source Data (Q1)
- Canada: GDP by Industry (Feb), Industrial Product Prices (Mar)
- *Taiwan National House Price Indexes Rebased to 2016=100.*
- Euro area: HICP (Apr-Flash), ECB Survey of Professional Forecasters (Q2)
- Italy: CPI, HICP (Apr-Prelim)
- Brazil: Sao Paolo Capacity Utilization (Mar);Mexico: Debt (Mar);
- more updates...
Economy in Brief
U.S. Employment Cost Index Has Stronger Gain
Lifted by outsized rises in several industries, the employment cost index for civilian workers rose 0.8% (2.4% y/y) during Q1'17...
Chicago Purchasing Managers Index Strengthens
The Chicago Purchasing Managers Business Barometer Index for April increased to 58.3 from 57.7 in March...
EMU Money and Credit Perk Up
There is some noticeable acceleration in EMU money and credit growth...
Durable Goods Orders Improvement Moderates
New orders for durable goods rose 0.7% (4.5% y/y) during March...
U.S. Initial Claims for Unemployment Insurance Increase
Initial unemployment claims for unemployment insurance rose to 257,000 during the week ended April 22...
U.S. Pending Home Sales Ease
The National Association of Realtors (NAR) reported that pending home sales slipped 0.8% ((+0.8% y/y) during March...
by Tom Moeller June 10, 2016
The National Association of Realtors reported that the Composite Index of Home Affordability declined 4.5% during April to 162.4, the lowest level since August. The index was 24.3% lower than its peak in January 2014. During the last ten years, there has been a 62% correlation between the affordability index level and the y/y change in existing single-family home sales.
Strong home sales, which are near the highest level since early-2007, have been accompanied by higher prices. The median sales price of an existing home strengthened 4.8% (6.2% y/y) to $233,700, the highest level since June. The price rise was accompanied by an average mortgage rate of 3.89%, little changed m/m and the lowest level in nearly three years. Together, principal & interest payments rose to $881, or 15.4% of median income. That percentage compared to a low of 11.7% early in 2013.
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.
To Reshore or Not to Reshore, That Is the Question from the Federal Reserve Bank of Atlanta is available here.
|Housing Affordability||Apr||Mar||Feb||Apr Y/Y||2015||2014||2013|
|Median Sales Price (Existing Single Family Home)||$233,700||$223,100||$213,600||6.2%||$221,350||$207,125||$195,933|
|Monthly Mortgage Rate||3.89%||3.87%||4.04%||3.95%||4.03%||4.30%||4.00%|
|Principal and Interest Payment||$881||$839||$820||5.5%||$849||$820||$750|
|Median Family Income||$68,665||$68,509||$68,405||2.3%||$67,507||$65,910||$64,030|
|Payment as a Percent of Income||15.4||14.7||14.4||14.9||15.1||14.9||14.0|