The Week Ahead: Measuring Home Affordability

On Monday, March 26, First American will release its monthly Real House Price Index (RHPI) for January. The RHPI measures the price changes for single-family homes across the U.S. after adjusting for the impact of income and interest rate changes on consumer house-buying power over time and across the United States at the national, state, and metro level. The RHPI also adjusts for house-buying power, making it a measure of housing affordability.

The December RHPI data released in February indicated that homes were 5 percent more expensive than they were a year ago. Between November and December 2017, house prices increased 0.4 percent. The report said that consumer house-buying power in December increased 0.1 percent and grew 5.6 percent on a year over year basis, while real house prices were 37.1 percent below their housing boom peak in July 2006 and 15.5 percent below the prices in January 2000.

Here’s what else is happening in the Week Ahead:

• S&P CoreLogic Case Shiller Index, Tuesday, 9 a.m. EST
• MBA Mortgage Apps data, Wednesday, 7 a.m. EST
• NAR Pending Home Sales Index, Wednesday, 10 a.m. EST
• University of Michigan Consumer Sentiment Survey, Thursday, 10 a.m. EST
• Fed Balance Sheet, Thursday, 1 p.m. EST
• Freddie Mac Primary Mortgage Market Survey, Thursday, 9 a.m. EST