New home sales in the US increased by 4.4% in July, outperforming expectations and highlighting the continued demand for new construction due to a shortage of existing affordable homes. Despite rising mortgage rates, buyers are turning to new homes, causing a decline in sales in the resale market. However, as mortgage rates continue to rise, builder sentiment may be negatively impacted and prices may need to be adjusted to attract buyers.
Mortgage rates topping 7% have led to a significant drop in mortgage applications for home purchases, with last week seeing the smallest volume in 28 years. The increase in rates, driven by concerns of high inflation, has priced out many potential buyers and contributed to low housing supply and high home prices. As a result, sales of previously owned homes have declined, and homeowners are reluctant to sell their properties due to the higher rates. Some buyers are turning to adjustable-rate mortgages to manage the increased costs.
Homebuyers' purchasing power has been negatively impacted by rising mortgage rates, which averaged 7.2% in August, the highest level since 2001, resulting in a decline in existing home sales and a shift towards new-construction homes.
Pending home sales in the US rose by 0.9% in July, marking the second consecutive month of growth, despite high prices and increasing mortgage rates, with the rise attributed to an expanding job market and the potential for further increases given the number of failed offers; however, year-over-year pending transactions fell by 14%.
In August, the number of homes actively for sale decreased by 7.9% compared to the previous year, while the total number of unsold homes, including those under contract, decreased by 9.2%.
Average 30-year mortgage rates are still elevated at 6.94% in August, but they are expected to come down by the end of the year; however, a significant drop that will boost homebuying demand is not likely until 2024 or 2025, but there are advantages to buying a home even when rates are high, such as less competition.
The Atlanta-area housing market in August reached a plateau with slow price increases due to high mortgage rates, limited inventory, and a housing shortage, but experts predict a flood of buying once mortgage rates decrease.
Mortgage payments in the US have reached a record high due to high mortgage rates and increasing home prices, causing pending home sales to decline by 12% year over year and pushing some buyers to the sidelines; however, sellers can still expect fair prices due to low inventory.
The Greater Boston housing market experienced a slow month in August, with home sales dropping to their lowest point for the month since 2010, primarily due to higher interest rates and a shortage of available homes for sale, leading to increased competition and higher prices for buyers.
Home prices continued to rise in August due to low inventory and high mortgage rates, causing a drop in home sales, according to a report from the National Association of Realtors.
The United States housing market has seen a 21 percent decline in previously occupied home sales over the past year, continuing the slowdown caused by rising interest rates, while prices continue to rise despite the decrease in sales, leading to a shortage of affordable homes and worsening home affordability for the foreseeable future.
Sales of previously owned homes fell 0.7% in August from July, with high mortgage rates and tight supply impacting potential buyers.
Homebuyers are making fewer deals in August due to rough housing conditions, and the situation may worsen with potential mortgage rate increases to 8%.
Home sales in the American Midwest defied the national trend by increasing in August, while sales across the country declined, due to high mortgage rates and low supply, according to data from the National Association of Realtors. Overall, home sales decreased by 0.7% in August and over 15% from the previous year, but analysts noted a stabilization in the market. The Midwest saw a 1% increase in home sales compared to July, but a more than 16% decline compared to the previous year.
Pending home sales in the U.S. plummeted due to high mortgage rates, deterring buyers and sellers from making deals, exacerbating the ongoing inventory shortage and driving up home prices.
Mortgage approvals for house purchases have reached a six-month low in August, signaling a decline in lending and making it harder for buyers to secure homes due to rising interest rates; however, there is still hope that the market can recover if the Bank of England stops increasing interest rates and both buyers and vendors become more realistic.
30-year mortgage rates experienced their largest one-day drop since early March, falling almost three-tenths of a point to a record low, following a surge to a 23-year high the day before, prompting potential homebuyers to shop around for the best mortgage option.
Mortgage rates have continued to rise, causing a 6% decrease in mortgage demand and the lowest level of activity in the housing market since 1995.
Mortgage demand hits a 28-year low as long-term mortgage rates soar above 7%, leading to a slowdown in homebuying activity and applications to refinance, while adjustable-rate mortgages become more popular.
Home buying demand drops as U.S. mortgage rates reach highest level since 2000, leading to a decline in mortgage application volume.
Mortgage rates in the U.S. housing market are approaching 8%, causing concern and potentially discouraging home-buying demand due to higher monthly mortgage payments relative to incomes.
The average long-term U.S. mortgage rate has reached its highest level since December 2000, making it more challenging for potential homebuyers to afford a house and discouraging homeowners from selling due to locked-in low rates from two years ago. The combination of high rates and low home inventory has exacerbated the affordability issue, pushing home prices near all-time highs and leading to a 21% drop in sales of previously owned homes. The increase in mortgage rates is attributed to various factors, including inflation shifts, labor market changes, and uncertainty surrounding the Federal Reserve's next move.
Mortgage rates have risen again, reaching 7.49%, contributing to a decline in demand in the housing market as potential buyers hesitate due to high rates and limited inventory.
Mortgage rates dropped at the end of the week, with the 30-year fixed-rate average at 8.07%, significantly lower than the previous week's historic high of 8.34%.
September saw a significant decline in home sales, with the lowest tally since 1995 and a 32 percent drop from the previous year, due to high interest rates and homeowners' reluctance to sell and move to a place with a higher monthly payment, leaving few options for prospective buyers.
Existing-home sales in September are expected to be at their lowest level in over a decade due to rising mortgage rates.
Home sales in the US dropped in September to the lowest level in 13 years due to rising interest rates and climbing home prices, making it unaffordable for many potential buyers. The low inventory of homes for sale pushed prices up, with the median price for existing homes reaching a record high of $394,300 last month.
U.S. existing home sales dropped 2% in September due to high mortgage rates and a shortage in housing supply, with prices falling slightly and the supply crunch being driven by the surge in mortgage rates over the past year.
Mortgage rates reaching 8% are causing a tighter supply of homes for sale, leading to increased demand and further deteriorating affordability, according to Morgan Stanley analysts who warn that if rates stay at this level, affordability would reach its most severe level in decades. Despite the unaffordability, the analysts predict that home prices will likely increase due to low supply and a lack of negative shocks to the broader economy.
The US housing market is experiencing a significant decline in existing-home sales, with September seeing a 15% drop compared to the previous year, due to factors such as high mortgage rates, low inventory levels, and rising home prices.
Mortgage rates have risen to nearly 8%, making it a challenging year for home sales, but buyers can still find value by shopping around for the best deal and increasing their down payment, according to Freddie Mac.
Pending home sales unexpectedly increased by 1.1% in September, as buyers took advantage of a temporary stabilization in mortgage rates before they moved higher, according to the National Association of Realtors, while overall activity remains largely blunted in the resale market with pending transactions down by 11% on a yearly basis.
Mortgage rates are nearing 8%, causing many homebuyers to back out of the market, and while some are turning to adjustable-rate mortgages or incentives from homebuilders, rising rates are expected to continue to pose challenges.
Mortgage rates are nearing 8%, causing purchase activity to slow and affordability to remain a significant hurdle for potential homebuyers.