Home sales reach highest level since beginning of recession

Rising mortgage rates, prices might put a damper on things

New York /
Dec.December 21, 2016 02:45 PM

Home sales in November jumped to the highest levels seen since the beginning of the recession, but the flurry of activity could be tempered by rising mortgage rates and sale prices.

Sales of previously-owned homes in the U.S. rose 15.4 percent year-over-year last month to an annual rate of 5.6 million, the highest sales rate seen since 2007, according to a study by the National Association of Realtors (NAR).

At the same time, borrowing rates have soared since the Nov. 8 election. For 30-year fixed-rate mortgages, the average rate was 3.77 percent in November — up from 3.47 the previous month, the Wall Street Journal reported. The average rate has continued to climb in December, reaching 4.16 percent last week.

“We do expect some tapering off of home sales in 2017,” Lawrence Yun, the NAR’s chief economist, told the Journal.

Sales prices are also increasing as supply tightens. In November, the median sales price was $234,900, which was a 6.8 percent jump from the same time last year. [WSJ] — Kathryn Brenzel


Related Articles

arrow_forward_ios
The median existing-home price exceeded $300,000 for the first time last year (iStock)
Vicious cycle creates “huge supply crunch,” pushing home prices up
Vicious cycle creates “huge supply crunch,” pushing home prices up
NAR's Vince Malta (Photos via NAR; Pixabay; iStock)
NAR suspends federal political donations after Capitol attack
NAR suspends federal political donations after Capitol attack
From left: Sen. Roger Marshall, Sen. Josh Hawley, Sen. John Kennedy, Sen. Ted Cruz and Senator Cindy Hyde-Smith (Getty, iStock)
National Association of Realtors among biggest donors to “sedition caucus”
National Association of Realtors among biggest donors to “sedition caucus”
 U.S. pending home sales declined for the third consecutive month. (iStock)
Pending home sales decline for third straight month
Pending home sales decline for third straight month
Moonbeam Capital Steven Maskin. (iSock, Moonbeam)
Private equity exec picks up $9M condo at Trump World Tower
Private equity exec picks up $9M condo at Trump World Tower
Residential sales surged in November (Getty)
South Florida home sales soar in November, led by luxury properties
South Florida home sales soar in November, led by luxury properties
President Donald Trump (Getty)
Realtor groups sue to block federal eviction ban
Realtor groups sue to block federal eviction ban
National Association of Realtors president Charlie Oppler (Photo via NAR; iStock)
NAR apologizes for housing discrimination
NAR apologizes for housing discrimination
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...