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Mortgage Rate Decline Cools Real House Price Growth in May, According to First American Real House Price IndexFirst American Financial Corporation (NYSE: FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions, today released the May 2017 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 and across the United States at national, state and metropolitan area levels. Because the RHPI adjusts for house-buying power, it also serves as a measure of housing affordability. May 2017 Real House Price Index
Chief Economist Analysis: Dip in Rates and Growth in Wages Benefit Home Buyers in May "Consumer house-buying power improved this month because of the small decline in the 30-year, fixed-rate mortgage and modest wage gains. The improvement in buying power offset the gains in unadjusted house prices, so affordability improved, albeit just barely," said Mark Fleming, chief economist at First American. "Contrary to popular opinion, when considering real, consumer buying-power adjusted prices, prospective home buyers benefited in May as homes became more affordable. Despite the tight supply and strong demand, real home prices remain well below housing boom peak levels." "While the lack of homes for sale is creating ery competitive sellers' markets throughout the country, home buyers got some relief this month. While it may be hard to find a home to buy, in May, buyers were able to afford a little more home than last month," said Fleming. Additional Quotes from Chief Economist Mark Fleming
May 2017 Real House Price State Highlights
May 2017 Real House Price Local Market Highlights
Next Release The next release of the First American Real House Price Index will be the week of August 21, 2017 for June 2017 data. Methodology The methodology statement for the First American Real House Price Index is available at http://www.firstam.com/economics/real-house-price-index. Disclaimer Opinions, estimates, forecasts and other views contained in this page are those of First American's Chief Economist, do not necessarily represent the views of First American or its management, should not be construed as indicating First American's business prospects or expected results, and are subject to change without notice. Although the First American Economics team attempts to provide reliable, useful information, it does not guarantee that the information is accurate, current or suitable for any particular purpose. © 2017 by First American. Information from this page may be used with proper attribution. About First American First American Financial Corporation (NYSE: FAF) is a leading provider of title insurance, settlement services and risk solutions for real estate transactions that traces its heritage back to 1889. First American also provides title plant management services; title and other real property records and images; valuation products and services; home warranty products; property and casualty insurance; and banking, trust and investment advisory services. With total revenue of $5.6 billion in 2016, the company offers its products and services directly and through its agents throughout the United States and abroad. In 2016 and again in 2017, First American was named to the Fortune 100 Best Companies to Work For® list. More information about the company can be found at www.firstam.com. View source version on businesswire.com: http://www.businesswire.com/news/home/20170724005532/en/ |