First American Financial Corporation (FAF) has released their First American Real House Price Index (RHPI) for February 2020. 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. According to FAF’s chief economist Mark Fleming “As the coronavirus outbreak continues to affect the domestic and global economy, the housing market has shown that it is not immune to its impact. While mortgage rates have fallen due to the current economic uncertainty, stay-at-home orders have made it more difficult for potential home buyers to take advantage of the affordability boost, and first-time home buyers may have an even more difficult time as lenders have tightened credit availability.”
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House Price Appreciation May Have Reached Tipping Point, According to First American Real House Price Index