Home sales in the United States plummet to a 10-year low

Recent data revealed that the sale of existing homes in America recorded the slowest pace since September 2012, except for a brief decline at the start of the Covid-19 pandemic.
According to a monthly survey by the National Association of Realtors, previously owned home sales fell 1.5% in September compared to August sales to a seasonally adjusted annual rate of 4.71 million units.
This marks the eighth consecutive month of declining sales. On an annual basis, sales fell by 23.8%.
The 30-year median fixed rate mortgage interest contract with loan balances matching the guidelines ($ 647,200 or less) increased to 6.94% from 6.81%, with points dropping to 0.95 from 0 , 97 (including activation costs) for first installment loans. . This is the highest rate since 2002 in the Mortgage Bankers Association index.
With interest rates soaring and home prices continuing to rise, potential homebuyers are struggling to buy a home and many more are now turning to variable rate loans that offer lower interest rates.
Mortgage rates rose though 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 home builders’ confidence to drop the National Association of Home Builders index into negative territory; That’s half of what it was just six months ago.
(agencies)