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96 The Big Finish Wrap your head around the market's leading indicators. 96 HOUSING AFFORDABILITY CONTINUES TO PLUMMET As mortgage rates are projected to rise above 5.5% in 2022, home prices are expected to continue outpacing household consumer income. First American Financial Corporation has released the February 2022 First American Real House Price Index (RHPI), measuring 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 national, state, and metropolitan area levels. "In February 2022, the Real House Price Index jumped up by nearly 31%. at's the fastest growth in the more than 30-year history of the series. is rapid annual decline in affordability was driven by two factors—a 21.7% annual increase in nominal house prices and a nearly full percentage point increase in the 30-year, fixed mortgage rate compared with one year ago," said Mark Fleming, Chief Economist at First American. "Rising mortgage rates impact both housing supply and demand, limiting supply by reducing the propensity of homeowners to sell and flattening demand by reducing consumer house-buying power." First American reported that Real house prices increased 5.8% between January 2022 and February 2022, and between February 2021 and February 2022, real house prices rose 30.6%. Consumer house-buying power, which gauges how much one can buy based on changes in income and interest rates, decreased 3.6% between January 2022 and February 2022, and decreased 6.8% year over year. e median household income increased 5.1% since February 2021, and 70.4% since January 2000. 96 The top five states with the greatest year- over-year increase in the RHPI are: FLORIDA +43.1% SOUTH CAROLINA +42.8% ARIZONA +39.0% GEORGIA +38.8% CONNECTICUT +35.8% Among the Core Based Statistical Areas (CBSAs) tracked by First American, the five markets with the greatest year-over-year increase in the RHPI are: CHARLOTTE, N.C. +46.1% RALEIGH, N.C. +42.4% PHOENIX +41.3% TAMPA, FLA. +39.6% JACKSONVILLE, FLA. +39.1%