"However, it's not a recession in home prices. "We're witnessing a housing recession in terms of declining home sales and home building," Lawrence Yun, the chief economist at the National Association of Realtors, said. Not only is this rate down 5.9% from June's pace - and 20.2% from the year-ago rate - it also marks the slowest rate of sales since May 2020. According to the organization, in July, existing home sales declined for the sixth consecutive month to a seasonally adjusted annual rate of 4.81 million units. It has led to a decline in purchasing demand - and ultimately a slowdown in the real estate market.ĭata from the National Association of Realtors shows that sales of previously owned homes are also on the decline. Rate hikes have increased the cost of homeownership making housing far less affordable for many Americans.
Mortgage rates have been on a proverbial seesaw as the Federal Reserve combats soaring inflation by raising interest rates. Although the rate fell from the previous week's reading of 5.22%, it is still a significant increase from a pandemic low of 2.68% in December 2020.
#Trending news of 2016 mac
The average US fixed rate for a 30-year mortgage came in at 5.13% last week, Freddie Mac reported in its weekly mortgage market survey. For new home prices, however, the worst is yet to come," Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note.Īnother factor slowing demand is the much higher cost of taking out a mortgage than was seen over the previous few years. "It's reasonable to assume that the steepest declines in sales are behind us, though they likely will fall a bit further. Waning demand and rising prices helped pull homebuilder confidence into contractionary territory in July, signaling the US is in the midst of a housing-market recession. Elevated material costs continue to weigh on homebuilders and hinder attempts to speed up construction. Yet prices have continued to climb due to persistently strained inventory.
0 kommentar(er)
