Home resale fell again in August in the US

US home resales fell in August for the seventh consecutive month with potential buyers put off by rising mortgage interest rates despite a further decline in prices.

Last month and at an annualized rate, 4.80 million houses and flats changed hands, the national federation of real estate agents (NAR) reported on Wednesday.

Existing home sales fell 0.4% from July and 19.9% ​​from August 2021, when interest rates were at record lows.

Prices, which had soared since the start of the pandemic, nevertheless fell for the second month in a row. The median price stood at $389,500, after peaking at $413,800 in June, and is still 7.7% higher than the median value in August 2021.

You may also be interested Germany nationalizes its largest gas importer, Uniper

“The real estate sector is the most sensitive and suffers the most immediate impacts of changes in the Federal Reserve’s interest rate policy” (Fed), said the chief economist of the NAR, Lawrence Yun.

Mortgage rates have risen since the beginning of 2022, and have just exceeded 6% for the first time since 2008, after the housing bubble burst.

To curb high inflation, the Fed raises its reference rates, which sets the tone for the various loans to households and businesses. And the expectation is that the movement will continue, since a new rate hike is expected this Wednesday.

More content in our News section.

Follow us on

Agence France Presse is a French press agency with thousands of journalists and collaborators around the world. It has various informative products, supported by journalistic notes, chronicles, photographs, videos and infographics. It has 200 offices in 151 countries, generates 5 thousand news a day.

see more

Source link

About John

Check Also

How much does Televisa pay actors? Actress ends mystery on salary

CableTV.com conducted a study to find out the reasons why users are interested in a …

Leave a Reply

Your email address will not be published.