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.
Sales of existing homes have declined due to the rise in mortgage rates, but the demand for new homes is increasing as buyers are hesitant to sell their current homes with low-interest mortgages.
Pending home sales in the US unexpectedly rose by 0.9% in July, defying expectations of a decline, as the housing market slowly recovers from the impact of rising mortgage rates and a shortage of inventory.
US mortgage rates have slightly decreased after five consecutive weeks of increases, but still remain above 7% due to inflation concerns. The combination of high rates and low housing inventory is making it more difficult for potential homebuyers to enter the market, leading to lower home sales.
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%.
Home prices, which had been steadily rising since January, may be starting to decline again due to weakening month-to-month gains and higher mortgage rates.
The gauge of US mortgage applications for home purchases fell to a 28-year low last week due to high mortgage rates, making homeownership less affordable and driving housing affordability to its worst point in decades.
The demand for mortgages in the US has dropped to its lowest level since 1996, with both purchase and refinance applications falling due to low housing inventory and elevated mortgage rates.
Builder confidence in the US housing market unexpectedly dropped for the second consecutive month in September, as high mortgage rates dampened consumer demand for new homes.
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.
U.S. homebuilding fell to a three-year low in August due to higher mortgage rates, but permits for new construction increased, signaling support from a shortage of homes on the market.
U.S. home price growth increased to 2.5% year-over-year in July, with Miami, St. Louis, and Detroit driving the growth, while 11 states saw annual home price declines, according to CoreLogic's latest home price index data. Rising mortgage rates and a lack of inventory are putting pressure on potential homebuyers, and pending home sales have seen slight upticks, particularly in the West and South regions.
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.
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.
The rise in housing prices over the past three years can be attributed to a shortage of supply, low volume in the market, and the introduction of mortgage rate buydowns; however, there is now a risk of too much inventory being introduced into the market, and a potential decline in mortgage rates could lead to a large amount of existing homes being sold and a subsequent oversupply.
Higher mortgage rates are causing existing-home sales in August to decline and may also impact new home sales in the near future.
Sales of newly built homes in the housing market decreased by 8.7% last month, indicating that higher mortgage rates are negatively impacting the industry.
Mortgage applications and housing demand have dropped as a result of increased mortgage rates, which are now at their highest levels in over 20 years, leading to limited inventory and fewer options for buyers.
Pending home sales in the US dropped 7.1% in August, following a surge in mortgage rates to levels not seen in 20 years, with all four US regions experiencing monthly losses and year-over-year declines in transactions.
As the US housing market starts to cool down, homebuyers are being presented with a good opportunity as more homes see price reductions, according to Zillow, with 9.2% of listings having a price cut in the week ending September 16, a higher rate than in 2019.
The fall housing market is experiencing a decrease in home sellers and a limited inventory, leading to high prices and limited affordability, although there is some potential for buyers to find more reasonably priced homes.
Mortgage rates are expected to fall in the coming months, offering homebuyers more affordability and potentially boosting the housing market.
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.
US single-family homebuilding rebounded in September due to high demand and an acute housing shortage, but the surge in mortgage rates may slow momentum and delay the overall housing market recovery, as loan applications to purchase homes plummeted to levels last seen in 1995.
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.
Mortgage rates nearing 8% and a shortage of homes for sale are preventing potential homebuyers, particularly first-time buyers, from entering the market, leading to a 2% decrease in existing-home sales in September compared to the previous year.
Existing home sales fell to levels not seen since the Great Recession while prices remained high amid the highest mortgage rates in 23 years, signaling a slowdown in the housing market.
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.
Sales of new U.S. single-family homes reached a 19-month high in September, with median house prices dropping by the most since 2009 due to discounts offered by builders, although the high mortgage rates could dampen future demand.
