Home sales fall again despite lower mortgage rates

Yan Zhang

,

USA TODAYMay 28, 2019
1:00
1:00
Washington is the best state in the country, according to U.S. News & World Report

Sales of existing homes fell for a second straight month in April, but the market should rev up soon, the National Association of Realtors (NAR) said on Tuesday.

Home sales dipped 0.4% from March to a seasonally adjusted annual rate of 5.19 million . Sales were down 4.4% from a year ago.

Student debt is still holding back many millennial buyers, says Lawrence Yun, NAR’s chief economist. And prices for the entry-level homes that age group targets have risen sharply because of low supplies.

Meanwhile, a big drop in mortgage rates didn’t boost home sales. The average rate for a 30-year, fixed-rate mortgage dropped to 4.14% in April from 4.27% in March, according to Freddie Mac, the mortgage loan company. The average rate in 2018 was 4.54%.

Yun believes sales will pick up later this year.

“We are seeing historically low mortgage rates combined with a pent-up demand to buy, so buyers will look to take advantage of these conditions,” Yun says.

“Also, job creation is improving, causing wage growth to align with home price growth, which helps affordability and will help spur more home sales,” Yun added.

The median sale price last month was $267,399, up 3.6% from a year ago. April’s increase marks the 86th straight month of year-over-year gains.

Home sales fell 4.5% in the Northeast and 0.4% in the South.  Sales grew 1.8% in the West and were flat in the Midwest.

Housing supplies are rising but remain below normal levels. The inventory of existing homes for sale increased 1.7% to 1.83 million.

Baby boomers aren’t downsizing homes as they age” style=”margin: 0px 0px 1em;”>Home size: Baby boomers aren’t downsizing homes as they age

More people who lost homes during housing crisis are buying again” style=”margin: 0px 0px 1em;”>Boomerang buyers: More people who lost homes during housing crisis are buying again

An affordable home may be the key to building wealth” style=”margin: 0px 0px 1em;”>Homeowners:: An affordable home may be the key to building wealth

“Despite today’s slip, home sales this spring and summer will likely keep pace with last year as a result of increased availability of homes for sale and the lower mortgage rates that are expected to prevail in the second half of the year,” said Danielle Hale, chief economist for realtor.com.

Home sales fall again despite lower mortgage rates” style=”margin: 0px 0px 1em;”>This article originally appeared on USA TODAY: Home sales fall again despite lower mortgage rates

Related Posts

  1. Home prices could jump 5% in the next 12 months as high mortgage rates freeze the housing market, Zillow economists say
  2. Homebuyers can’t get a break as mortgage rates march back toward 7%
  3. US pending home sales stuck at 22-year low despite dip in rates
  4. The US housing market is set to cool this fall, setting up a rare opportunity for buyers as sellers slash prices, Zillow says
  5. Home prices kept climbing even as existing home sales tanked last month
  6. Existing home sales sank to slowest pace in 30 years in 2023
  7. Landlords pumped billions into apartment buildings during the pandemic. That bet could now go horribly wrong.
  8. Housing market data suggests sector’s downturn ‘coming to an end’
  9. Homebuilders are liking today’s housing market
  10. Homebuyers are ‘losing patience,’ no longer on the sidelines: survey
  11. Homeowners Are Increasingly Reluctant to Sell, But Not For The Reason You’d Expect
  12. Housing market predictions: The forecast for the next 5 years
  13. We’re entering a brutal new era for the housing market
  14. Disturbing Trend For Real Estate Investors: Homes Sold At A Loss, Numbers Not Seen Since 2016 — But This Booming Alternative Is Open To Anyone

Tags: ,

Leave a Reply