Home Sales Continue To Drop As Prices and Rates Remain High

Home Sales , Continue To Drop , As Prices and Rates Remain High.
In August, home sales declined for the seventh month
in a row as rising mortgage rates and lingering
high prices drove potential buyers out of the market.
CNN reports that sales of existing
homes were down 19.9% from 2021,
the weakest level since November 2015.
According to a report by the National Association of Realtors, a year-over-year decline was seen across all price categories.
At the same time, home prices
continued to climb, reaching
a median home price of $389,500.
That's up 7.7% from
the same time in 2021.
CNN reports that the increase
marks more than a decade of
year-over-year monthly gains.
The housing sector is the most sensitive
to and experiences the most immediate
impacts from the Federal Reserve’s
interest rate policy changes. , Lawrence Yun, National Association
of Realtors chief economist, via CNN.
The softness
in home sales
reflects this year’s
escalating mortgage rates, Lawrence Yun, National Association
of Realtors chief economist, via CNN.
Last week, the average rate for a 30-year fixed-rate mortgage climbed to 6%. .
That's the highest it's been since 2008
and almost double what it was in 2021.
All bets are off
if mortgage rates
go higher, Lawrence Yun, National Association
of Realtors chief economist, via CNN