Tag Archives: Mark Fleming

Consumer homebuying power decreased from June to July 2023 and decreased 11.0% year-over-year, according to the First American Real House Price Index, sending housing affordability to its lowest level in more than three decades.

A new Housing Perspectives Blog post by Mark Fleming, the Chief Economist for First American Financial Corporation and the lead of First American’s Decision Sciences Team, focused on housing market potential and the lock-in effect.

According to First American Financial Corporation, housing affordability fell relative to one month ago as two of three key drivers of the Real House Price Index (RHPI), nominal house prices and mortgage rates reduced house-buying power by 0.7%.

While the Real House Price Index found that home prices, and therefore affordability, decreased across the country, median household income has increased 4.1% since January 2022.

Based on April’s data, potential existing-home sales increased to a 5.34 million seasonally adjusted annual rate, a 0.45% month-over-month increase. This represents a 53.3% increase from the market potential low point over 30 years ago in February 1993.

According to a new report from First American, the Potential Home Sales Model for March revealed it is unlikely that the recent banking crisis will materially impact residential mortgage availability.

The Annual Five Star Government Forum is set for April 11 in Washington, D.C., bringing together mortgage servicing leadership and government agency reps to discuss the industry’s most pressing issues.

“Our Potential Home Sales Mode has now increased for four consecutive months alongside generally lower mortgage rates, providing some optimism,” said Mark Fleming, Chief Economist at First American.

The 13th Annual Five Star Government Forum is set for next week in our nation’s capital, bringing together mortgage servicing leadership and government agency reps to discuss the industry’s most pressing issues and work toward solutions.

“The steep annual decline in market potential was largely a result of higher mortgage rates, which prevent both buyers and sellers from jumping into the market,” said Mark Fleming, Chief Economist for First American Financial Corporation.