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.
US home prices are expected to surge by 6.5% due to tight inventory and high mortgage rates, according to Zillow, contradicting predictions of a decline by other firms.
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.
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 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.
There are indications that a severe economic contraction may be approaching in the US, with a significant decline in home sales and rising interest rates, similar to the 2008 financial crisis, according to Bloomberg analyst Mike McGlone.
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.
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 in the US fell for the third consecutive month in August, as higher mortgage rates, rising prices, and a lack of available properties have limited homebuyers' options.
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.
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.
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.
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.
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.
US mortgage rates have risen to 7.49%, making homeownership more difficult for potential homebuyers due to high costs and low 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.
Homebuilder confidence in the US dropped to its lowest level in 10 months due to high mortgage rates, which have led to lower buyer traffic and decreased housing affordability.
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.
Sales of previously occupied U.S. homes in September dropped to their slowest pace in over a decade due to surging mortgage rates and limited inventory, while home prices continue to rise.
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.
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.
