First American says consumer house-buying power is highest its been in nearly two decades

In June, home prices fell 2.2%, decreasing 4.6% year over year, according to First American’s Real House Price Index. Despite this decline, consumer buying power ticked up 3.3% between May and June, increasing 12.2% on an annual basis. This means home prices are actually 41.3% below their 2006 peak. First American Chief Economist Mark Fleming said that June’s housing affordability was attributed to declining mortgage rates and the nation’s rising household incomes.