From NPR · · 1m 10s
Home sales hit 16-year low as mortgage rates soar
Existing home sales fell to their lowest level since 2010, driven largely by mortgage rates that have climbed to 7.40 percent.
In brief
Existing home sales fell to their lowest level since 2010, driven largely by mortgage rates that have climbed to 7.40 percent. Home sales in October fell to 3.75 million, the lowest since 2010, as high mortgage rates priced buyers out of the market. Originally reported by NPR.
Sales plunge to lowest in 16 years
Existing home sales in October fell to 3.75 million, an 8.8 percent decline from a year earlier. The last time sales were this low was 2010.
High mortgage rates drive the decline
In October, the average rate for a thirty year fixed rate mortgage hit seven point four zero percent, the highest since twenty twenty three. Rates remain well above year ago levels.
Fed rate hikes intentionally slowing housing
The Federal Reserve raised its benchmark interest rate in September to increase borrowing costs and slow economic activity. Policymakers have signaled another rate hike could come in December.
Economist calls it a punch in the gut
Joel Berner, senior economist at Realtor.com, said the drop was unexpected. "We expected to see a soft month but not the softest month since 2010," he said.
“We expected to see a soft month but not the softest month since 2010.”
The bottom line
Home sales in October fell to 3.75 million, the lowest since 2010, as high mortgage rates priced buyers out of the market.
