A high homeownership rate would suggest affordable housing and loan terms in line with local income levels. A decline in homeownership rates can also mean that the housing market faces challenges and that you may want to wait for a better time to buy a home.
Housing supply indices provide information on the number of vacant homes. In addition, the historical indexes can also indicate how many new and old properties are available simultaneously, as well as indicative of future price changes.
The 30-year-fixed mortgage rate is another leading indicator of the U.S. housing market. A lower interest rate usually translates to less money that home buyers have to pay to finance their mortgage and buy a home 30-year-fixed mortgage rates tend to decrease when the economy is doing well and increase the demand for real estate.
Rental affordability and home affordability are related to the percentage of residents who qualify for a mortgage or a rental in a specific neighborhood. Surveyors compile this data by comparing the average price of homes or rental units to the median household income in that area.
Changes in aggregate indicators can be interpreted as changes in the amount of equity that homeowners control. By definition, homeowners will have gained equity if the aggregate changes in a positive direction.