Marketwatch (July 14)
“Only 9% of all existing mortgages in the U.S. were taken out with a rate of above 6%,” with a majority of mortgages at rates below 4%. As a result, “the supply of new homes has been severely constrained by this imbalance…. New listings — a measure of how many sellers were putting up their homes for sale — were down 27% in early July versus a year ago.”
Tags: 4%, 6%, 9%, Constrained, Existing mortgages, Homes, Imbalance, New listings, Sale, Sellers, Supply, U.S.
Mansion Global (July 11)
“The market has cooled since June, when the Federal Reserve raised interest rates 0.75% to help curb inflation.” Housing inventory is rising, “finally giving buyers some options and negotiability with sellers.” As a result, “nearly 15% of home contracts in the U.S. were canceled in June,” which had approximately 60,000 cancellations. That’s up 12.7% over May and 11.2% year on year.
Tags: Buyers, Contracts, Cooled, Fed, Housing inventory, Inflation, Interest rates, June, Market, Negotiability, Options, Sellers, U.S.
Bloomberg (June 30)
“The Federal Reserve is cooling off the red-hot housing market as it fights to curb inflation by driving up interest rates.” The ensuing “housing slowdown is helping to solve the US real estate market’s most intractable problem: tight inventory.” New sellers are entering the market at a faster pace while there are “fewer buyers competing.” As a result, “the number of active US listings jumped 18.7% in June from a year earlier, the largest annual increase in data going back to 2017.”
Tags: Buyers, Cooling off, Fed, Housing market, Inflation, Interest rates, Intractable, Inventory, Listings, Real estate, Red-hot, Sellers, Slowdown, U.S.
