Rising rates leave dent in US housing market

Miami /
Jan.January 25, 2017 12:45 PM

From the New York website: 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
Brian Tuttle wins approval for 205 single-family home project in Parkland
Brian Tuttle wins approval for 205 single-family home project in Parkland
Brian Tuttle wins approval for 205 single-family home project in Parkland
(iStock)
Home prices across globe hit records, prompting worries of bubble
Home prices across globe hit records, prompting worries of bubble
Lennar Executive Chairman Stuart Miller (iStock)
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
“The home used to be just shelter. Now it is the hub of our entire lives”: Lennar reports strong Q4, full-year results
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Rent-to-own startup Divvy Homes expands to South Florida
Ben Schachter, Sean Black and Mike Pappas (Signature, Getty, Keyes)
Knock expands home lending program into South Florida 
Knock expands home lending program into South Florida 
Rendering of Belmont Village Coral Gables and Baptist Health South Florida CEO Brian L. Keeley
Baptist, Belmont gain approval for luxury senior living in Coral Gables
Baptist, Belmont gain approval for luxury senior living in Coral Gables
9885 Palomino Drive (Credit: Google Maps)
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
Resort Lifestyle Communities scores $36M construction loan for Lake Worth senior housing project
5010 Nob Hill Road (Credit: Google Maps)
Sunrise affordable senior housing facility sells for $30M
Sunrise affordable senior housing facility sells for $30M
arrow_forward_ios

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

Loading...