Rising rates leave dent in US housing market

Existing home sales fell in December

TRD New York /
Jan.January 25, 2017 10:45 AM

Single family homes in the U.S. (Credit: Rachel Elaine via Flickr)

The number of U.S. existing home sales fell in December, as rising mortgage rates threaten to cool off a hot property market.

Sales volume fell 2.8 percent compared to November on a seasonally-adjusted basis to an annualized 5.49 million deals, according to the National Association of Realtors, after having grown through much of 2016.

“Solid job creation throughout 2016 and exceptionally low mortgage rates translated into a good year for the housing market,” NAR chief economist Lawrence Yun told the Wall Street Journal. “However, higher mortgage rates and home prices combined with record low inventory levels stunted sales in much of the country in December.”

Mortgage rates rose from 3.5 percent at the beginning of November to 4.3 percent at the end of December, according to Freddie Mac, while the median home price rose 4 percent to $232,200.

The 5.45 million existing home sales recorded in 2016 are slightly above the 2015 total of 5.25 million, but still well below the 2006 peak of 6.48 million.

Zillow chief economist Svenja Guddell argued that rising mortgage rates will have “some of the bigger impacts in very expensive metros.” [WSJ]Konrad Putzier 


Related Articles

arrow_forward_ios
Home prices are on the rise, and homeowners are opting to stay in their homes longer (Credit: iStock)

Home prices accelerate nationally as owners stay longer

Realogy CEO Ryan Schneider (Credit: iStock)

Realogy’s plan to stop the iBuyers from gaining a foothold in Chicago

136 Clinton Avenue (Credit: iStock)

How to sell a haunted listing

Jerome Powell and New York City construction in October 2019 (Credit: Getty Images)

The Fed lowers rates, and once again real estate is loving it

Housing and Urban Development Secretary Ben Carson (Credit: Getty Images, iStock)

HUD wants to jumpstart bank lending on low-income homes

Lenders issued the most mortgages in 14 years last quarter (Credit: iStock)

Nonbank lenders could give serious boost to cooling housing market

Ben Carson on Opportunity Zones, unity and red and black ants: TRD Miami Showcase & Forum

Ben Carson on Opportunity Zones, unity and red and black ants: TRD Miami Showcase & Forum

Home foreclosures dropped nearly 20% in Q3, report shows

Home foreclosures dropped nearly 20% in Q3, report shows

arrow_forward_ios
Loading...