- On it's own the NAR's Housing Affordability Index is pretty useless - it hasn't dropped below the 100 level signaling unaffordability since Bill Clinton was president. But researchers from Robert Morris University suggest the index can detect a housing bubble if it slips below its long-term trend line for at least three months.
- And that's just what it's done of late, falling below the long-term trend in April and staying there through July (July figures were reported yesterday). This doesn't mean prices are set to crash - by RMU's read, housing went into a bubble in 2004, but prices didn't peak until two years later - but the data might be another push to a Fed considering tighter monetary policy.
- Homebuilders ETFs: XHB, ITB, PKB, REZ.
Housing enters a bubble by one measure
Sep 10 2013, 10:32 ET