Sales of existing homes in the United States fell 2.2% in July compared to the previous month and 16.6% year-over-year, to an annualized figure of 4.07 million, according to data from the National Association of Realtors
The latest data on the housing sector in the United States has reignited fears of a real estate crisis. The interest rate on fixed-rate, 30-year mortgages reached 7.31% last week, its highest level since December 2000, while demand for mortgages to purchase homes plummeted to its lowest level since April 1995, according to data from the Mortgage Bankers Association (MBA).
"Mortgage applications for home purchases fell to their lowest level since April 1995, as buyers pulled back from the market due to the high interest rate environment and the erosion of purchasing power," said Joel Kan, vice president and deputy chief economist at MBA.
In this regard, the expert explained that, while the fixed-rate mortgage rate for a 30-year term increased to 7.31% last week, "the highest level since December 2000, the low supply of housing is also keeping prices high in many markets, adding to the obstacles that buyers face in accessing home ownership.".
Yesterday, the Department of Housing and Urban Development reported that sales of new single-family homes reached an annualized rate of 714,000 units in July, up 4.4% from June and 31.5% from the same month in 2022. The median sales price reached $436,700 and the average sales price reached $513,000, representing a decrease of 8.7% and 9.2%, respectively, year over year.
Borrowing costs have continued to rise this week, with Mortgage News Daily putting the 30-year fixed rate at nearly 7.5 percent last Tuesday.
Sales of existing homes in the United States fell 2.2% in July compared to the previous month and 16.6% year-over-year, to an annualized total of 4.07 million, according to data from the National Association of Realtors. Two factors are driving current sales activity: inventory availability and mortgage rates.
Source: Hoy Newspaper.
