Existing-home sales sunk even further in September, with all regions seeing declines.
Sales fell by 2% to a seasonally adjusted annual rate of 3.96 million, according to the latest data from the National Association of Realtors.
Leaders there say sales retreated 15.4% from one year ago.
“As has been the case throughout this year, limited inventory and low housing affordability continue to hamper home sales,” said NAR Chief Economist Lawrence Yun. “The Federal Reserve simply cannot keep raising interest rates in light of softening inflation and weakening job gains.”
All regions saw sales slip last month, with the formerly-hot Northeast and Midwest joining the South and West in declines.
The median price for an existing home rose 2.8% YOY to…
Pending home sales tanked in August, reversing a two-month trend of increases.
NAR’s Pending Home Sales Index fell by 7.1% to a reading of 71.8 in July. An index of 100 is equal to the level of contract activity in 2001.
“Mortgage rates have been rising above 7% since August, which has diminished the pool of home buyers. Some would-be home buyers are taking a pause and readjusting their expectations about the location and type of home to better fit their budgets,” said Lawrence Yun, NAR chief economist. “It’s clear that increased housing inventory and better interest rates are essential to revive the housing market.”
Year-over-year, pending sales dropped by 18.7%. All four U.S. regions saw declines both month-over-month and…
Existing-home sales slipped overall in August, though activity in the Midwest and Northeast remained hot.
Sales fell by 0.7% to a seasonally adjusted annual rate of 4.04 million, according to the latest data from the National Association of Realtors.
Year-over-year, sales are down 15.3%.
“Home sales have been stable for several months, neither rising nor falling in any meaningful way. Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run,” said NAR Chief Economist Lawrence Yun.
Poor performances in the South and West overshadowed neutral activity in the Northeast and a spike in the Midwest. Yun noted that the South’s performance is an improvement over…
Student loan payments are set to resume this October, giving Americans yet another monthly bill to stress about, and the impact is expected to set in early.
“It’s going to quickly reverse all the progress that was made during the repayment pause, especially for those who took out new debt in mortgages or auto loans where they had the financial room because they weren’t paying their student loans,” Laura Beamer, who researches higher education finance at the Jain Family Institute, told the New York Times.
Monthly student loan bills before the pandemic came in between $200 and $299, a serious chunk of change that borrowers have not had to budget around.
A report by the Federal Reserve found that about…
Mortgage rates retreated last week, dropping more than ten basis points in a one-week period.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.78%, down from 6.96% the week prior. A year ago at this time, the 30-year FRM averaged 5.54%.
The 15-year fixed-rate mortgage reversed course as well, down a whopping 24 bps from 6.30% to 6.06%. A year ago, it averaged 4.75%.
“As inflation slows, mortgage rates decreased this week,” said Sam Khater, Freddie Mac’s Chief Economist. “Still, the ongoing shortage of previously owned homes for sale has been a detriment to homebuyers looking to take advantage of declining rates.”
Existing-home sales saw their most sluggish levels in 14 years in June.
At the…
Existing-home sales increased slightly in May, just enough to put a positive spin on the otherwise difficult market.
Sales rose by 0.2%, barely moving, to a seasonally adjusted annual rate of 4.30 million from 4.28 million the month prior, according to the latest data from the National Association of Realtors.
Year-over-year, sales are down 20.4%.
The South and West saw improvement month-over-month, but the Northeast and Midwest fared poorly.
“Mortgage rates heavily influence the direction of home sales. Relatively steady rates have led to several consecutive months of consistent home sales,” said NAR Chief Economist Lawrence Yun.
The median price for an existing dropped, down 3.1% to $396,100, NAR found. This is just the fourth YOY decline in years. February’s…
Mortgage rates declined last week, breaking a three-week streak of increases.
Officials at Freddie Mac reported Thursday that the 30-year fixed-rate mortgage averaged 6.71%, down from 6.79% the week prior.
A year ago at this time, the 30-year FRM averaged 5.23%.
The 15-year fixed-rate mortgage also fell from 6.18% to 6.07%. A year ago, it averaged 4.38%.
“Mortgage rates decreased after a three-week climb,” said Sam Khater, Freddie Mac’s Chief Economist. “While elevated rates and other affordability challenges remain, inventory continues to be the biggest obstacle for prospective homebuyers.”
Elevated rates are keeping prospective home sellers locked in their current homes, unwilling to give up the super-low rates they scored during the pandemic housing boom. Builders are building, but not…
Middle-income buyers—classified as households earning up to $75,000— were once strong homebuying candidates with income to spare. Just five years ago, this group could afford to buy half of all available homes on the market.
Now, they can afford just 23% of listings, according to an analysis from the National Association of Realtors (NAR) and Realtor.com. The housing market needs about 320,000 mid-tier listings to make up for demand.
Middle-income buyers can on average afford a home valued up to $256,000, but very few are available. Among the 100 biggest metros, El Paso, Boise, and Spokane, WA, have the fewest affordable homes for this group. Ohio leads the way with the most, in Youngstown, Akron, and Toledo.
“Middle-income buyers face…
April brought no change in pending home sales, according to the National Association of Realtors.
NAR’s Pending Home Sales Index remained at 78.9 in April, the same reading as in March. An index of 100 is equal to the level of contract activity in 2001.
Year-over-year, pending sales dropped by 20.3%.
“Not all buying interests are being completed due to limited inventory,” said NAR Chief Economist Lawrence Yun. “Affordability challenges certainly remain and continue to hold back contract signings, but a sizeable increase in housing inventory will be critical to get more Americans moving.”
Analysts differ on when inventory will be correct.
ATTOM Data’s Rick Sharga told Bankrate not to expect a big inventory boost anytime soon. But Robert Johnson,…
Existing-home sales dipped in April as high interest rates and low inventory continued to negatively impact the market.
Sales declined by 3.4% to a seasonally adjusted annual rate of 4.28 million from 4.44 million the month prior, according to the latest data from the National Association of Realtors.
Year-over-year, sales are down 23.2%.
All four major regions saw sales decline year-over-year and month-over-month.
“Home sales are bouncing back and forth but remain above recent cyclical lows. The combination of job gains, limited inventory, and fluctuating mortgage rates over the last several months have created an environment of push-pull housing demand,” said NAR Chief Economist Lawrence Yun.
“Roughly half of the country is experiencing price gains. Even in markets with lower…
