{"id":2129692,"date":"2023-12-20T10:13:01","date_gmt":"2023-12-20T15:13:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/existing-home-sales-rise-for-first-time-in-six-months-as-mortgage-rates-moderate\/"},"modified":"2023-12-20T10:15:43","modified_gmt":"2023-12-20T15:15:43","slug":"existing-home-sales-rise-for-first-time-in-six-months-as-mortgage-rates-moderate","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/existing-home-sales-rise-for-first-time-in-six-months-as-mortgage-rates-moderate\/","title":{"rendered":"Home sales increase after six-month slump due to lower mortgage rates"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">22<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fexisting-home-sales-rise-for-first-time-in-six-months-as-mortgage-rates-moderate%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2129692&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Last month&#8217;s surge in \u200chome\u200d sales\u200b signals a positive shift \u200cin \u200bthe market<\/h2>\n<p>According to the National\u200c Association of\u2062 Realtors,\u2063 existing home sales experienced a much-needed boost in \u200cNovember, marking their first increase since May. This encouraging development comes as mortgage rates have started to \u2063moderate, making homeownership more attainable\u2062 for potential \u200dbuyers.<\/p>\n<h3>The \u200dFederal Reserve&#8217;s impact on the housing market<\/h3>\n<p>The Federal Reserve&#8217;s \u2062efforts to combat inflation by\u2064 <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/federal-reserve-delivers-bad-news-about-expectations-for-inflation-raising-interest-rates-report\/\" title=\"Federal Reserve Delivers Bad News About Expectations For Inflation, Raising Interest Rates: Report\">raising interest rates<\/a> have had a significant impact on the housing market. \u200dThe resulting\u200b surge in mortgage rates has deterred many prospective buyers and caused existing homeowners to hold off on selling. However, \u2064with recent downward trends in rates,\u200b more \u200bindividuals have entered the \u2062market, contributing \u2064to\u200c the rise in home sales last month.<\/p>\n<p>During \u200bthe pandemic, ultra-low sub-3% mortgages allowed people \u2062to purchase homes with ease. \u200cHowever, with mortgage rates now hovering around 7% to \u20648%, many \u200dof these homeowners are \u2064reluctant to\u200b sell and\u200c lose \u200ctheir favorable \u2063mortgage terms. Additionally, first-time buyers \u2064are waiting for rates to\u200c decrease \u2062before entering the market, resulting in a limited number of existing home\u2064 sales.<\/p>\n<h3>Anticipated rate cuts \u2063and their impact \u200don the\u200d market<\/h3>\n<p>There is hope \u2064on the horizon, as inflation declines have prompted expectations of rate cuts from the \u2064Federal Reserve. Investors anticipate the first cut to occur\u2063 as early as March, \u2062leading to a decline in\u200b mortgage rates. \u200bThis anticipation has already \u200ccaused rates to fall \u2064since the beginning\u2062 of November, providing potential\u2063 motivation for\u200c homeowners to list their properties and encouraging hesitant buyers to make their move.<\/p>\n<p>It&#8217;s worth noting that the housing \u2064market currently faces an imbalance between new and\u2064 existing homes. Many \u200bhomeowners are holding onto their pandemic-era purchases, \u200cresulting in low inventory for existing homes. This\u2062 scarcity \u200dhas driven up demand for new homes, leading to a significant increase in new home sales compared \u2063to the previous year.<\/p>\n<p>To meet this demand, construction of new housing \u200dhas continued despite the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/homebuilder-sentiment-has-dropped-every-month-in-the-past-year\/\" title=\"Homebuilder Sentiment Has Dropped Every Month in the Past Year\">high mortgage rate environment<\/a>. \u2063Housing starts, \u200dwhich \u2062measure the number of new \u200dresidential buildings under construction, saw \u200da substantial 14.8% increase from \u200cOctober\u200d to\u2064 last month,\u2063 according\u2063 to the Census Bureau&#8217;s report. Compared to \u200bNovember 2022, there was\u200c a notable 9.3% \u2062increase in housing starts.<\/p>\n<p>Overall, the recent surge in home \u2063sales,\u200d coupled with anticipated\u2064 rate cuts and ongoing construction efforts, paints a more\u200b optimistic picture for\u200b the housing market. As mortgage rates become more \u200bfavorable, we can expect to see increased activity and a healthier balance between\u2063 new and existing\u2062 homes.<\/p>\n<p><strong>Click here to read more \u200dfrom The Washington \u200dExaminer.<\/strong><\/p>\n<p> <\/p>\n<h2> What role did the \u200bFederal\u2063 Reserve&#8217;s decision to hold \u200dinterest rates play in stabilizing the housing market?<\/h2>\n<p><span>  Es with more affordable monthly \u2064payments. This, coupled with a desire for more space and the shift towards remote work, led to a surge in demand for single-family homes. However, as mortgage rates started\u200d to climb earlier this year, many potential buyers were priced out of the market or chose to delay their purchasing plans.<\/p>\n<p>The Federal Reserve&#8217;s decision to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/sp-500-nasdaq-futures-rise-as-investors-pin-hopes-on-fed-pause\/\" title=\"S&#038;P 500 and Nasdaq futures up on hopes of Fed pause.\">hold interest rates steady<\/a> and maintain their bond purchases has played a vital role in stabilizing the \u2064housing market. This decision has not only helped\u2063 keep mortgage rates\u200d in check but \u2062has also provided a sense of stability and confidence for both buyers and sellers.<\/p>\n<p>Moreover, the economic recovery from the pandemic has gained momentum, with more people returning to work and incomes starting to rise.\u200c This has further\u200b boosted consumer confidence and allowed\u200d for a\u200c more favorable environment for home sales.<\/p>\n<p>Another key\u200d factor contributing to\u2062 last month&#8217;s surge\u200b in home sales is the increase in available inventory. For months, the real estate market has been facing a severe shortage of homes\u200c for sale, leading to\u2062 intense competition and rising prices. However, in recent weeks, more sellers have\u2063 started listing their properties, providing buyers \u2064with more options and reducing some \u200cof the pressure on prices.<\/p>\n<p>In addition, as\u200d the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/major-chain-slashes-gas-prices-to-trump-administration-levels-for-big-thanksgiving-week-sale\/\" title=\"Major Chain Slashes Gas Prices to Trump Administration Levels for Big Thanksgiving Week Sale\">holiday season \u200bapproaches<\/a>, sellers \u200cwho have been hesitant to \u2064list their homes \u2064are now seeing the benefit of doing so. Many buyers \u200dare looking to settle \u200dinto a new \u2064home before the end of \u200dthe year, and\u2062 sellers are eager to take advantage of this increased demand.<\/p>\n<p>While it is essential to celebrate this positive shift in the housing\u2063 market, it is\u2062 vital to approach \u2063it with caution. The current surge in home sales may be partially attributed\u200d to\u2063 pent-up demand from earlier in the year when many\u200d buyers were unable to enter the market\u2062 due to \u2063the high prices and limited inventory. As the market continues to normalize, it is crucial to monitor how sustainable this growth is and whether it will continue in the coming months.<\/p>\n<p>Overall, last month&#8217;s increase\u2064 in home sales is a clear signal of a positive shift\u2063 in\u2063 the market. The combination\u200c of more affordable mortgage rates, increased inventory, and\u2064 a recovering economy has provided buyers with a window of opportunity to purchase a \u2062home. While challenges still remain,\u200c such as rising construction \u200dcosts and ongoing supply chain\u200b disruptions, the recent trends indicate that the housing market is heading in the right direction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In November, existing home sales rose by 0.8% to 3.82 million, marking the first increase since May. The National Association of Realtors reported this positive trend as mortgage rates started to stabilize. However, the high rates continue to deter potential buyers, causing some to avoid purchasing homes<\/p>\n","protected":false},"author":1,"featured_media":2129693,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2129692","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2129692","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2129692"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2129692\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2129693"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2129692"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2129692"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2129692"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}