sales of located in the United States homes Projection for The second month in a row in March, an industry survey said Wednesday, a sign who – which higher Mortgage rates and rising Prices are taking the wind out of The sails of the booming sector.
Sales fell 2.7% last month to season adjusted annual rate of 5.77 million, which is 4.5 percent lower than in same month last yearNational Association of Realtors reported (NAR).
According to the survey, home Prices soared nationwide, the mediator price Increased to $375,300, or 15% jump compared to March 2021.
The drop in Sales Paid Offer up to two months in current sales pace11.8% higher from in February.
NAR Chief Economist, Lawrence Yun noted the impact of Tightening of lending terms and price increases around economy.
housing market I’m starting to feel the effect of sharply rising Mortgage rates and higher take inflation a hit on buy power,” he said. homes sold out quickly, and home price gains remain in The double-numbers. “
Sales are down in All regions except for West where it was flat. The greater Midwest witnessed decline of 4.5% while in In the south they decreased by 3%, roughly the same decrease drop in Northeast.
The Federal Reserve is moving To raise this interest rate year to curb record Inflation in the US, which will have effects across the US economy.
Its mortgage rates climbed Above 5% and Yoon predicted that they would do it rise Well, cause the list home Purchases to land 10% this year.
Lydia Bosor of Oxford Economics agreed that lower supply and higher prices would put downward pressures on Sales, though she said they would only go down so far.
“flexible demand And strong income gains should keep your floor under home Sales, however, especially if home price growth She said.