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Soaring home prices and mortgage rates drag on sales in the US
apnews.com • • general
Key Points:
- Sales of previously occupied U.S. homes declined 1.7% in July to an annual rate of 4.06 million units, hindered by record-high prices and mortgage rates reaching 6.69%, the highest in over a year.
- The U.S. median home sales price rose 2% year-over-year to $434,100, continuing a 37-month streak of annual price increases, with June marking an all-time high of $442,800.
- Low inventory levels persist, with 1.54 million unsold homes available in July, representing a 4.6-month supply, below the 5-6 months considered balanced for the market.
- First-time homebuyers accounted for 29% of sales in July, down from 33% in June and below the historical average of around 40%, reflecting affordability challenges.
- The housing market remains sluggish due to elevated mortgage rates driven by inflation concerns and geopolitical tensions, with sales stuck near a 30-year low and well below the historic norm of 5.2 million annual sales.
