Existing Home Sales Slid 17.8 Percent Last Year

Sales of existing homes fell 17.8% in 2022, marking the weakest sales performance since 2014 as interest rates climbed. Interest rates rose quickly last year, a factor that weighed on the residential real estate market. The 30-year fixed-rate mortgage averaged 6.15% as of Jan. 19, down from 6.33% last week, but up from 3.56% a year ago, according to Freddie Mac.

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Mortgage Payments Surge 50 Percent Since Last Year as Homebuyers Get Priced Out

As mortgage rates climbed, typical monthly mortgage payments on existing single-family homes with a 20% down payment skyrocketed by 50% in the third quarter of 2022 compared to the year prior, according to data released by the National Association of Realtors (NAR) Thursday.

Monthly mortgage payments under the above conditions climbed to $1,840 between July and September, and the median price of existing single-family homes climbed 8.6% on an annual basis to $398,500, according to the NAR. This monthly payment represented 25% of a family’s monthly income, and was up dramatically from the same time last year, when the typical payment was just $1,226, roughly 17.2% of a family’s income.

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Share of First-Time Buyers Plummets as Young Americans Are Pushed Out of the Housing Market

First-time homebuyers are now much older and comprised the lowest share of homebuyers since National Association of Realtors (NAR) records began over 40 years ago, as high interest rates and soaring home prices squeezed younger buyers out of the home market, the NAR reported Thursday.

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Home Sales Plummet in Ominous Sign for Economy

Sales of existing homes fell in September for the eighth month in a row, as historically high mortgage rates pummel demand for homes, the National Association of Realtors (NAR) announced Thursday.

The 1.5% decline from August contributed to a 23.8% slide compared to September 2021, as the median existing-home sales price rose 8.4% from last September, from $355,100 to $384,800, the NAR reported. NAR Chief Economist Lawrence Yun said that high mortgage rates were contributing to reduced demand, particularly in “expensive regions of the country.”

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U.S. Home Ownership Rate Sees Highest Annual Surge Ever Recorded

The rate of homeownership in the United States saw its highest surge ever recorded in 2020, with homebuying rates jumping significantly even as the country continues to see record-low stock in most states.

The homeownership rate “climbed to 65.5% in 2020, up 1.3% from 2019 and the largest annual increase on record,” the National Association of Realtors said in a press release this week.

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Mortgage Applications Plummet as Housing Prices Surged to Record High

Mortgage applications plummeted to their lowest level in three years as rates continued to edge higher, hitting home buyers and refinancers.

Mortgage applications decreased 13.1% in the week ending Feb. 18, the lowest level since December 2019, according to the Mortgage Bankers Association’s (MBA) Weekly Mortgage Application Survey. The survey, which measures mortgage loan application volume, found refinancing activity decreased 15% on a weekly basis and was 56% lower than the same period one year prior.

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Home Sales Surged to 15-Year High in 2021

U.S. existing home sales soared to a 15-year high in 2021 fueled by low interest rates and remote work, which boosted a competitive housing market, the National Association of Realtors (NAR) announced Thursday.

Home sales totaled 6.12 million in 2021, representing an 8.5% increase from 2020 and the highest level since 2006, according to the NAR. The inventory of unsold homes as of December 2021, 910,000, the lowest figure since January 1999.

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