Home sales fall again despite lower mortgage rates

Yan Zhang


USA TODAYMay 28, 2019
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. Super-low mortgage rates trigger a homebuying boom
  2. Mortgage rates nose-dive to new low and bring out the buyers
  3. Cheap Mortgage Rates May Fuel a Rapid Rise in Home Prices, Forecast Warns
  4. Brand Report: July Home Sales Jump 8.7% Despite Low Inventory, Ending Recent Skid
  5. New-Home Sales Hold Steady in April
  6. U.S. home sales surge to near two-year high; supply at record low
  7. Existing-Home Sales Slide By RISMedia Staff
  8. NAR: Home Prices Increased Across Most Metro Areas in Second Quarter
  9. Despite the Recession, Home Prices Are Up 4.9% From This Time Last Year
  10. New-home sales increased slightly in November — and 2020 looks set to be a big year for home builders
  11. Case-Shiller: Gains in Home Prices Resurge, Phoenix Rises
  12. U.S. housing starts rebound in September
  13. Home price growth ramped up yet again in January, Case-Shiller index shows
  14. Dead deals, slashed prices: Coronavirus drags down Southern California home sales

Tags: ,

Leave a Reply