Posted 11/27/2023, 9:00:00 PM
Home Sales and Prices Drop as Mortgage Rates Surge to 20-Year High
- New home sales fell short of expectations in October, with sales down 5.6% from September but up 17.7% from last year
- Existing home sales dropped to their lowest pace since 2010 in September, down 15.4% from the previous year
- Mortgage rates reached 8% in October, the highest level in over 20 years, hurting housing affordability
- Housing prices are still about 20% higher overall than pre-pandemic levels in early 2020
- Some investors are betting the Fed will start cutting interest rates by May 2024 amid speculation the central bank is done with hikes