—In August, rising demand for homes against limited supply accelerated house price appreciation, which overcame the affordability boost from rising house-buying power for the first time in 2020, says Chief Economist Mark Fleming—
First American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today released the August 2020 First American Real House Price Index (RHPI). The RHPI measures the price changes of single-family properties throughout the U.S. adjusted for the impact of income and interest rate changes on consumer house-buying power over time at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability.
Chief Economist Analysis: The End of the Great Mortgage Rate-Powered Affordability Boost?
“Throughout 2020, falling mortgage rates have been the strongest influence on housing affordability trends, even helping fuel the housing market’s