Rates, not home prices are positively impacting home affordability.
(According to the Real House Price Index)(by First American)
RHPI takes into account income, interest rates, & home prices (nationwide).
"Real house prices up 9.65% over the year..." RHPI
"Homes for sale declined to a 4.2 month supply(Sept.)." National Association of Realtors.
"28th consecutive month of year over year declines." First Am.
"The lack of supply is driving unadjusted home prices higher." First Am.
Although, housing is indeed more affordable due to lower rates And better incomes.
Aug. vs July rates(2017) with a modest .1%(month over month) wage increases produces a .4% increase in affordability(in Aug.). Reports First Am.
Overall Consumer house buying power
(aka how much one can buy based on changes in income&interest rates)
Rose (.8%)(July-Aug.).
http://www.dsnews.com/daily-dose/10-30-2017/rates-incomes-inch-housing-affordability-upward
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