Still, homeowners are faring well, with property prices surging despite a pullback in buyer demand, says NAR’s chief economist. Existing-home sales slipped further in August as economists blame the “housing recession” mostly on higher mortgage rates, though home prices continue rising, according to newly released data from the National Association of REALTORS®. But while existing-home sales, which reflect transactions for single-family hom
Despite an unexpected jump in new construction in September, demand for new homes is falling due to high prices and mortgage rates. Builders are lowering their asks to boost buyer traffic. Even as demand for new homes fizzles—about a quarter of homebuilders are reducing their prices to attract more buyers as foot traffic falls—single-family construction jumped 3.4% in August, the Commerce Department reported Tuesday. Economists are calli
Monthly mortgage payments are 60% higher than a year ago, according to NAR. Buyers can save by shopping around for different types of loans. The interest rate for the 30-year fixed-rate mortgage crossed a major threshold this week, hitting 6.02%—the first time it has broken 6% since 2008, Freddie Mac reported Thursday. Volatile mortgage rates are sending shockwaves through the housing market and unnerving home buyers who are concerned about shr
President Joe Biden ignored worse-than-expected US inflation data that roiled markets during a planned celebration for his signature climate-and-tax law.The law Biden celebrated Tuesday is called the Inflation Reduction Act, and the White House has repeatedly said tackling inflation -- a political liability for Democrats before the November midterms -- is the president’s top priority. But after the Labor Department reported, hours before the ev
The average interest rate on a 30-year home loan has hit 6% for the first time since 2008, the Mortgage Bankers Association said Wednesday,.The 6% rate is "essentially double what it was a year ago," Joel Kan, associate vice president of economic and industry forecasting at the trade group, said in a statement Wednesday. The higher mortgage rate has "contributed to more homebuyers staying on the sidelines," he added.Rising home ownershi
“Sellers often overlook signs of shrinking demand,” he said. Higher real estate financing costs hit economies in multiple ways. Households with loans tighten their belts, while rising mortgage payments discourage would-be buyers from entering the market, dragging on property prices and development.The slowdown is a stark turnaround from a boom fueled by central banks’ easy-money policies in the years after the financial crisis an
Sept 9 (Reuters) - U.S. household wealth fell by a record $6.1 trillion in the second quarter to its lowest in a year as a bear market in stocks far outweighed further gains in real estate values, a Federal Reserve report showed on Friday.Household net worth tumbled to $143.8 trillion at the end of June from $149.9 trillion at the end of March, its second consecutive quarterly decline, the Fed's quarterly snapshot of the national balance sheet sh
Borrowers stand to save thousands by gathering multiple quotes from lenders. As mortgage rates surge and remain volatile, it’s becoming increasingly necessary for home buyers to shop around for a loan to find savings. According to Freddie Mac, borrowers potentially could save an average of $1,500 over the life of a loan by gathering one additional rate quote from a lender. And borrowers could save even more by gathering five different quot
High inflation eases, but price pressures still intense The U.S. grew slightly through end the August, a Federal Reserve survey found, but the outlook for the economy over the next year “remained generally weak” because of rising interest rates and nagging labor and supply shortages.The regular Fed survey, known as the Beige Book, said the sharp increase in prices earlier in the year has begun to fade, but that inflation “remained elev
In June the average rate on the 30-year fixed shot over 6% briefly, and that was enough to turn the once-hot housing market on its heels. Rates pulled back in July and August, but the damage was already done. Now rates are heading past 6% yet again, causing already beleaguered mortgage demand to fall even further.The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($647,200 or less) increased to 5.94%
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