A “For Sale” sign is displayed in front of a home in Arlington, Virginia, on August 22, 2023.
Andrew Caballero-Reynolds | AFP | Getty Images
Sales of previously owned homes fell 0.7% in August from July to a seasonally adjusted, annualized rate of 4.04 million units, according to the National Association of Realtors. Sales were down 15.3% from August of last year.
This read is based on closings for contracts likely signed in June and July, when the average rate on the popular 30-year fixed mortgage was in the high 6% range. It moved over 7% toward the end of July and stayed there, hitting affordability hard.
“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” said Lawrence Yun, chief economist at the NAR, in a release. “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run.”
It is not, however, just higher rates hitting potential buyers. They are also not…
2023-09-21 09:28:22
Original from www.cnbc.com
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