Existing-home sales rose 1.7% in August to a seasonally adjusted annual rate of 5.48 million, the highest level in more than six years, as buyers rushed to lock in mortgage rates before they increased any further, the National Association of Realtorsreported Thursday.
The National Association of Realtors (NAR), which compiles the existing homes report, used the word "panic" in the July report and is warning that the gain in August may have also been skewed higher by nervous buyers and may also prove to be the "last hurrah" as higher mortgage rates, even with yesterday's Fed decision to maintain stimulus, are an immediate threat to the home sales market.
Another factor besides higher rates that is holding down sales is lack of homes on the market, at 4.9 months at the current sales rate vs 5.0 and 5.1 months in the prior two months. But a rise in prices is no longer a factor holding down sales, at least based on data in this report which show very slight downticks with the median price at $212,100.
The increase in mortgage rates has been holding back housing and is especially hitting first-time buyers which the NAR is warning are being "shut out" of the market. The NAR, citing data on the number of lockboxes, is also warning that traffic may be down. The next big report on housing will be next week on Wednesday with new home sales which have been disappointing in recent months.
Source: marketwatch,schwab
The National Association of Realtors (NAR), which compiles the existing homes report, used the word "panic" in the July report and is warning that the gain in August may have also been skewed higher by nervous buyers and may also prove to be the "last hurrah" as higher mortgage rates, even with yesterday's Fed decision to maintain stimulus, are an immediate threat to the home sales market.
Another factor besides higher rates that is holding down sales is lack of homes on the market, at 4.9 months at the current sales rate vs 5.0 and 5.1 months in the prior two months. But a rise in prices is no longer a factor holding down sales, at least based on data in this report which show very slight downticks with the median price at $212,100.
The increase in mortgage rates has been holding back housing and is especially hitting first-time buyers which the NAR is warning are being "shut out" of the market. The NAR, citing data on the number of lockboxes, is also warning that traffic may be down. The next big report on housing will be next week on Wednesday with new home sales which have been disappointing in recent months.
Source: marketwatch,schwab
