Normal
October 20 2022
18:08 pm
reading
one minute
Recent data revealed that sales of existing homes in America recorded the slowest pace since September 2012, with the exception of a brief decline at the start of the Covid-19 pandemic.
Sales of previously owned homes fell 1.5 percent in September from August sales to a seasonally adjusted annual rate of 4.71 million units, according to a monthly survey by the National Association of Realtors.
This marks the eighth consecutive month of declining sales. On an annual basis, sales decreased by 23.8%.
The average 30-year fixed-rate mortgage interest contract with guideline-matching loan balances ($647,200 or less) increased to 6.94% from 6.81%, with points dropping to 0.95 from 0.97 (including activation fees) for first-paying loans. 20%. This is the highest rate since 2002 in the Mortgage Bankers Association index.
With interest rates rising and house prices continuing to rise, potential homebuyers are struggling to be able to buy a home and more are now turning to adjustable rate loans that offer lower interest rates.
Mortgage rates moved higher even as another reading from the “Daily Mortgage News” website set the 30-year mortgage rate at 7.15% on Tuesday.
Higher rates and lower demand caused homebuilders’ confidence to fall back on the National Association of Home Builders’ index to negative territory; It is half what it was just six months ago.
(agencies)
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