First American Financial Corporation published its First American Real House Price Index report, which 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 the national, state and metropolitan area levels. The report that low mortgage rates will be key to housing affordability in the U.S. this summer.
"The economic fallout and impacts to the housing market from the pandemic appeared to peak in April. The number of existing-home sales fell 18% relative to March, housing starts fell 26%, and the supply of homes available for sale approached record lows," said Mark Fleming, chief economist at First American. "While historically low mortgage rates made it more affordable for those with stable incomes to buy a home, tightening credit standards and limited supply of homes for sale made it more difficult for some to obtain financing and find the home they want."