According to National Association of Realtors data released on Thursday, existing home sales decreased by 3.3% in June to a seasonally adjusted annual pace of 4.16 million.
At the end of June, there were 1.08 million housing units available, roughly the same as in May but down 13.6% from a year earlier.
Fewer Americans Relocating Despite Circumstances
In June, the average cost of an existing home was $410,200. Additionally, properties typically stayed on the market for 18 days in June, up from 14 days in June 2022 but the same as in May.
Sales were down 23% in the first half of the year, according to Lawrence Yun, chief economist for the NAR.
Despite the regular life-changing circumstances, fewer Americans were moving.
The lack of demand will undoubtedly materialize shortly, particularly if mortgage rates and inventory trends are in the right direction.
The Federal Reserve is very probably going to increase its interest rate target again later this month to a target range of 5.25% to 5.50%. The news comes as mortgage rates are rising to levels not seen since November.
According to Freddie Mac, the rate on the typical 30-year fixed-rate mortgage is now 6.96%, up from 6.67% about a month ago.
The typical 15-year fixed-rate mortgage now has a rate of 6.3%.In the latest report, new house sales shocked economists.
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Low Rates Encourage Homeowners To Hold Properties
According to the Census Bureau, new house sales increased 12.2% in May to a seasonally adjusted annual pace of 763,000, greatly exceeding experts’ predictions.
Owners of existing houses who have mortgages with rates locked in before 2022 are delaying selling because they want to maintain their historically low rates, as a result of the sharp increase in mortgage rates.
As a result, there will be less existing home inventory available on the market, increasing demand for new homes.
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