US existing homes fall 1.7% in July as record prices, high mortgage rates stifle would be-buyers
Summary
Sales of existing homes in the U.S. dropped 1.7% in July compared to June, mainly because home prices are at record highs and mortgage rates have climbed to levels not seen in over a year. The median price for a home rose to $434,100, while mortgage rates reached 6.69%, making it harder for buyers to afford homes.Key Facts
- Existing home sales fell to an annual rate of 4.06 million units in July, down 1.7% from June.
- July sales were slightly higher than economists predicted and up 0.7% from last year.
- The median sales price for U.S. homes in July was $434,100, a 2% increase over last year.
- The average 30-year mortgage rate rose to 6.69%, the highest since about one year ago.
- Home sales have remained near a 4 million annual pace for three years, below the 5.2 million historic average.
- There were 1.54 million homes for sale at the end of July, which is below pre-pandemic levels of about 2 million.
- The current home supply represents 4.6 months at the current sales speed; a balanced market usually requires 5 to 6 months.
- First-time buyers made up 29% of sales in July, less than the usual 40% historically.
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