US home sales slowest in more than a year as mortgage rates and prices climb
Housing market has been stymied by borrowing costs, as Iran war pushed mortgage rates higher
TL;DR
- Existing US home sales decreased by 2% in August, reaching a seasonally adjusted annual rate of 3.98 million units, the slowest pace in over a year.
- This marks the third consecutive monthly decline, with sales also down 1.2% compared to August of the previous year.
- Rising mortgage rates, driven by expectations of higher inflation and increased long-term bond yields, are a primary factor stifling the housing market.
- The average 30-year mortgage rate reached 6.76% in August, its highest in over 14 months.
- Despite slowing sales, the national median sales price increased 1.6% year-over-year to $429,100, an all-time high for August.
- Home inventory rose 5.9% from August last year to 1.62 million units, representing a 4.9-month supply, the highest in over a decade.
- First-time buyers accounted for 30% of purchases, an increase from previous periods but still below the historical norm of 40%.