A portion of this article was taken from the Yahoo finance website and written by a staff writer @ First American Financial Corporation (FAF), a leading global provider of title insurance, settlement services and risk solutions for real estate transactions.
If you purchasing a new home or refinancing to a lower mortgage interest rate give me a call. If I can’t save you at least $200 on your home and auto insurance, I’ll send you a $20 gas gift card.
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.
October 2016 Real House Price Index
- Real house prices increased 0.7 percent between September 2016 and October 2016
- Compared to September 2015, real house prices decreased by 0.4 percent.
- Unadjusted house prices are expected to increase by 5.3 percent in October on a year-over-year basis.
- Real house prices are 39.9 percent below their housing-boom peak in July 2006 and 19.2 percent below the level of prices in January 2000.
- Unadjusted, the national price level is 0.01 percent below the housing-boom peak in 2007.
“While we have yet to see the impact of the ‘Trump Bump’ and Yellen’s increase in mortgage rates on unadjusted house prices, I expect there to be an impact early next year. In 2013, we saw the significant slowing effect the ‘taper-tantrum’ had on unadjusted house prices. We expect unadjusted prices to respond similarly to the recent increases in mortgage rates, though to a lesser degree this time,” said Mark Fleming, chief economist at First American. “While mortgage rates above 4 percent reduce affordability, accelerating wage growth and the expected slowdown in unadjusted price appreciation are both beneficial for affordability.