All articles tagged with #home sales
Soaring mortgage rates and elevated home prices have created a stalemate in the U.S. housing market. While buyer demand has plummeted to multi-year lows, supply remains constrained, leaving sellers unable to close deals. Recent data shows 30-year fixed rates hovering near 7.6%, a level that has stalled transactions for millions of potential homeowners.
August existing-home sales slowed to a 3.98 million pace—the weakest in 14 months—while supply rose to about 1.62 million homes, the highest since 2019, as the 30-year mortgage rate nears 7%; economists say demand remains weak despite more listings, giving buyers greater leverage, with the median August price at $429,100 (an August high).
Sales of existing homes in the US fell to their slowest pace in more than a year, pressured by higher mortgage costs and a long-standing shortage of homes for sale; August inventory rose to about a 4.9-month supply (the highest in more than a decade), with regional declines in the Northeast, Midwest and South and a flat market in the West. Prices climbed in the Northeast, while affordability remains a major hurdle for buyers; first-time buyers accounted for about 30% of purchases, below historical levels.
The 30-year fixed mortgage rate rose to 7.07%, the first time above 7% since May 2025, as Treasury yields and oil prices climbed. Higher borrowing costs are lifting monthly payments and weighing on homebuying, with existing home sales slipping while prices rise and homebuilders' stocks retreat.
Capital Economics forecasts a prolonged US housing slowdown through 2028: mortgage rates staying above 6% for at least two more years, home prices flat in 2026 with a gradual rebound to about 2.5% in 2027 and 4% in 2028, and sales around 4.7 million by late 2026—the slowest pace since 2011.
Trump officials floated potential tax breaks for owners selling their primary homes, including indexing capital gains for inflation and expanding the home-sale exclusion, but experts say any move before the midterms is unlikely and benefits would mainly accrue to wealthy homeowners. Since changes would require Congress, and time is tight, the administration’s proposals may not materialize soon, with analysts noting the current $250,000/$500,000 exclusion hasn’t kept pace with rising home equity.
U.S. existing-home sales fell 1.7% in July to a 4.06 million SAAR, the second straight monthly drop, as mortgage rates climbed to 6.66% and prices rose 2% year over year to a median of $434,100; year-to-date sales are up 2.4%, but affordability remains the main drag on activity, with economists noting the higher rates reduce buyers’ purchasing power and Zillow signaling a market peak may have occurred.
The Iran conflict has driven the 30-year mortgage rate to about 6.5%, erasing recent affordability gains and cooling buyer demand as 2026 sales forecasts grow uncertain amid higher energy prices and inflation. Builders like KB Home cut full-year guidance, and Redfin notes rising inventories and a growing gap between sellers and buyers in many markets.
With mortgage rates still high, homeowners are opting to stay in place and expand outward, converting yard space into living areas and shrinking backyards.
U.S. home sales in 2025 fell to a 30-year low as elevated prices and costly mortgages constrained buyers, highlighting persistent affordability challenges despite limited housing supply.
U.S. existing home sales increased slightly in November amid falling mortgage rates, but limited housing inventory and economic uncertainties have restrained a stronger market recovery. The median home price rose to $409,200, and sales were modestly up, though overall demand remains subdued due to labor market concerns and stretched affordability.
November home sales in the US saw a slight increase of 0.5% from October but remained 1% below November 2024, with supply declining and prices reaching record highs, driven by high mortgage rates and limited inventory, while affordability concerns persist despite wage growth.
The average 30-year U.S. mortgage rate has dropped to 6.19%, its lowest in over a year, boosting refinancing activity and potentially aiding a sluggish housing market, amid expectations of further rate cuts by the Federal Reserve.
Mortgage rates in the US have fallen to 6.19%, the lowest in over a year, potentially boosting homebuyer activity as home prices soften and affordability improves, with experts expecting rates to stay within the 6-7% range amid signs of economic slowdown.
US existing home sales increased in September to their fastest pace since February, driven by declining mortgage rates and increased property availability, though high borrowing costs and a persistent housing shortage continue to impact the market. Home prices are at a record high for September, and while more homes are on the market, the supply remains below pre-pandemic levels, affecting affordability and sales dynamics.