Higher Mortgage Rates Continue to Upend the Housing Market
Source: Economics Group of Wells Fargo Bank, N.A.
Resales Decline in July
- Existing home sales fell 5.9% to a 4.81 million-unit pace during July, the sixth straight monthly drop.
- Single-family sales declined 5.5%, while condo and co-op sales fell 9.1%.
- Total sales are now running 20.2% below the pace registered during the same period last year. The culprit behind the retreat in resales is higher mortgage rates, which have significantly further reduced affordability and pushed prospective buyers to the sideline.
- Inventories continue to rise as buyers tap the brakes and more homeowners seek to sell their homes before the market cools off even further. Unsold inventory increased to 1.31 million in July. Inventories, which are now back to June 2021 levels, are still low by historical standards, but rising quickly. Months’ supply improved to 3.3 months, up from 2.9 in June.