Higher mortgage rates and lower inventory levels are hitting homebuyers hard.
Sales of previously owned homes fell 0.7% in August from July to a seasonally adjusted, annualized rate of 4.04 million units, according to the National Association of Realtors. Sales were down 15.3% from August of last year.
This read is based on closings for contracts likely signed in June and July, when the average rate on the popular 30-year fixed mortgage was in the high 6% range. It moved over 7% toward the end of July and stayed there, hitting affordability hard.
« Home sales have been stable for several months, neither rising nor falling in any meaningful way, » said Lawrence Yun, chief economist at the NAR, in a release. « Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run.
