Home Sales , Continue To Drop , As Prices and Rates Remain High.
In August, home sales declined for the seventh month in a row as rising mortgage rates and lingering high prices drove potential buyers out of the market.
CNN reports that sales of existing homes were down 19.9% from 2021, the weakest level since November 2015.
According to a report by the National Association of Realtors, a year-over-year decline was seen across all price categories.
At the same time, home prices continued to climb, reaching a median home price of $389,500.
That's up 7.7% from the same time in 2021.
CNN reports that the increase marks more than a decade of year-over-year monthly gains.
The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve’s interest rate policy changes.
, Lawrence Yun, National Association of Realtors chief economist, via CNN.
The softness in home sales reflects this year’s escalating mortgage rates, Lawrence Yun, National Association of Realtors chief economist, via CNN.
Last week, the average rate for a 30-year fixed-rate mortgage climbed to 6%.
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That's the highest it's been since 2008 and almost double what it was in 2021.
All bets are off if mortgage rates go higher, Lawrence Yun, National Association of Realtors chief economist, via CNN
