Record high prices, rising mortgage rates depress US home sales

U.S. existing home sales fell for a third straight month in May as record-high prices and a resurgence in mortgage rates sidelined potential buyers from the market.

CouponFollow Extension

99%
OFF

US Home Prices Just Smashed Another Record High As Affordability …

3 weeks from now

The monthly mortgage payment at that price, when accounting for the 6.99% median interest rate for a 30-year mortgage, is now $2,829. That is roughly $30 shy of April's record.

msn.com

7%
OFF

Mortgage Rates Hit 7%, Posing Another Challenge For Homebuyers : …

3 weeks from now

Jan 16, 2025 · It's the first time since May 2024 that 30-year mortgage rates have hit that mark. High rates are adding to the affordability challenges many Americans are facing.

npr.org

2%
OFF

Housing Market Update: Buying A Home Costs More Than Ever, …

3 weeks from now

Apr 25, 2024 · The median U.S. home price rose 5.2% year over year this week, and mortgage rates hit their highest level since November 2023. Prices continue to rise partly because there …

redfin.com

$407500
OFF

How High Rates And High Prices Are Contributing To Low Existing …

3 weeks from now

5 days ago · With 2024 existing home sales dropping to 4.06 million, the median sales price reached a record high of $407,500, according to the NAR. Mortgage rates are a key piece of …

fortune.com

11%
OFF

Housing Market Update: The Cost Of Buying A Home Hits New …

3 weeks from now

Apr 18, 2024 · The combination of high mortgage rates and prices have brought homebuyers’ median monthly housing payment to a record $2,775, up 11% year over year. There are …

redfin.com

FAQs about Record high prices, rising mortgage rates depress US home sales Coupon?

Why did home prices go up in the midst of a sales slump?

Even in the midst of a sales slump, a dearth of homes on the market and rising mortgage rates gave sellers an edge over buyers, helping drive up the national median home price for all of last year to an all-time high $407,500, an increase of 4.7% from a year earlier. ...

Why have mortgage rates dropped so much since April?

Median housing payments have fallen slightly since April despite record sale prices because weekly average mortgage rates have declined to 6.99% . Mortgage rates are likely to decline further over the summer, which would keep monthly housing costs from spiraling up again. ...

Are home prices rising?

Home prices rose even as sales slowed and the supply of properties on the market climbed to its highest level since May 2020. “Right now we’re seeing increased inventory, but we’re not seeing increased sales yet,” said Lawrence Yun, the NAR’s chief economist. ...

Are rising mortgage rates dampening homebuyer demand?

Bob Broeksmit, President and CEO of the Mortgage Bankers Association, said in a statement that "the upward drift in mortgage rates … is dampening homebuyer demand." Mortgage applications to buy a home were down 2% from a year ago, he says. ...

Why did home prices rise in 2022?

Home prices rose even as sales slowed and the supply of properties on the market hit its highest level in 4 years. The U.S. housing market has been mired in a slump going back to 2022, when mortgage rates began to climb from pandemic-era lows. ...

Why did the average mortgage rate hit 71% this week?

The average weekly mortgage rate hit 7.1% this week, its highest level since November 2023, as it became clear the Fed would keep interest rates high longer than expected. High prices and mortgage rates drove the median monthly housing payment to a record $2,843, up 13% year over year. ...