Home Sales Slammed

(DailyEmailNews.com) – Shooting down Joe Biden’s claims that he got the economy under control, the real estate market took a downturn in existing home sales due to constant price hikes and an upward trend in mortgage rates.

The National Association of Realtors (NAR) reported that previously owned home sales fell by 4.3% from February to March and dropped 3.7% compared to the same period last year, settling at an annual pace of 4.19 million.

At the same time, giant Freddie Mac said the average rate for a 30-year fixed mortgage escalated to 7.10% this week, up from 6.88% last week.

This increase in mortgage rates has diminished Americans’ enthusiasm to change homes and risks securing loans at higher interest rates.

As The Wall Street Journal highlighted, this downturn in existing home sales is the biggest decline in more than a year.

NAR Chief Economist Lawrence Yun said in the organization’s press release: “Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves. There are nearly six million more jobs now compared to pre-COVID highs, which suggests more aspiring home buyers exist in the market.”

March also saw a 4.7% increase in housing inventory from February and a 14.4% rise from last year, with the total inventory reaching 1.11 million, according to NAR.

Furthermore, the average home price has continued to climb for the ninth consecutive month year-over-year, reaching a record high of $393,500 for March.

Freddie Mac’s Chief Economist Sam Khater stated, “The 30-year fixed-rate mortgage surpassed 7% for the first time this year, jumping from 6.88% to 7.10% this week.”

According to the Federal Reserve Bank of St. Louis, the average rate for a 30-year fixed mortgage has skyrocketed since 2021, beginning below 3% and peaking at nearly 8% in October 2023.

The Federal Reserve’s adjustments to the federal funds rate, which is currently between 5.25% and 5.50%, have added to the rising average mortgage rate. Recent rumors about delays in rate reductions have sent mortgage rates upward.

Under Joe Biden, high inflation rates have impacted housing prices, with a 20.5% increase since January 2021 and a year-over-year growth of 5.65% as of March.

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