{"id":2153599,"date":"2024-01-19T10:27:02","date_gmt":"2024-01-19T15:27:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/existing-home-sales-fell-to-lowest-level-since-2010-in-response-to-high-mortgage-rates\/"},"modified":"2024-01-19T10:30:38","modified_gmt":"2024-01-19T15:30:38","slug":"existing-home-sales-fell-to-lowest-level-since-2010-in-response-to-high-mortgage-rates","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/existing-home-sales-fell-to-lowest-level-since-2010-in-response-to-high-mortgage-rates\/","title":{"rendered":"Home sales hit lowest since 2010 due to surging mortgage rates"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><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-fell-to-lowest-level-since-2010-in-response-to-high-mortgage-rates%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=2153599&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>Existing Home Sales Plummet to Lowest Level in Over a Decade<\/h2>\n<p>December \u200bsaw\u2064 a significant decline in existing home \u2062sales,\u200d reaching the lowest level in more\u2062 than ten years.\u2062 The National Association of Realtors reported that home sales slowed\u200c by 1% to a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/report-home-prices-are-up-nearly-25-since-this-time-last-year\/\" title=\"Report: Home Prices Are Up Nearly 25% Since This Time Last Year\">seasonally adjusted annual rate<\/a> of 3.78 million. This drop \u2064can be attributed to higher mortgage rates, which\u2064 have caused turmoil in the housing market.<\/p>\n<p>The impact of these higher\u200d rates is evident as many potential buyers have been priced out of the market, while homeowners are avoiding selling their properties to avoid reentering the home loan\u2064 market. The pace of home sales is down 6.2%\u200d compared to the \u200dprevious year.<\/p>\n<h3>Key Statistics:<\/h3>\n<ul>\n<li>Total housing inventory at the end of December\u2063 was 1 million units, down 11.5% from November but up 4.2% from a year ago.<\/li>\n<li>The median price of an existing home in November was $382,000, marking a 4.4% increase from the \u2063previous year.<\/li>\n<li>Homes typically remained on the\u200c market for 29 days in December, up from 25 days in November.<\/li>\n<\/ul>\n<p>The Federal Reserve&#8217;s efforts to combat inflation by <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\u2063 market. When \u200dthe Fed&#8217;s target \u2063rate increases, mortgage rates tend to follow suit. This rise in rates\u2063 comes after a period of historically low \u2064interest rates due to the pandemic, which initially fueled a booming housing market. However,\u2064 the sudden increase in rates\u2062 has quickly crushed the\u2063 market, \u2064with mortgage\u2062 rates now at their highest level in two decades.<\/p>\n<p>Currently,\u2062 the average rate on a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/2023-review-top-economic-stories-of-the-past-year\/\" title=\"2023 Recap: Key economic events of the year\">30-year fixed-rate \u200cmortgage<\/a> is 6.89%,\u2064 according to Mortgage News \u2064Daily. While this is lower than\u2063 the recent peak \u200dof above 8%, it is \u2063still significantly higher than pre-pandemic years.<\/p>\n<p>One \u200bcontributing factor to the imbalance between new\u2062 and existing home sales is that many homeowners are holding onto their ultra-low mortgages\u200d obtained during \u200cthe pandemic. This puts additional pressure \u200con the market for new\u2064 homes.<\/p>\n<p>Although new home sales declined in November, they \u2062are \u2063still higher compared\u2064 to November 2022.\u200c The data for\u2063 December new home sales is set to be released next Thursday.<\/p>\n<p>However, \u2064there is hope \u2063for those looking to \u2064purchase a home as\u200c mortgage rates are expected to decrease this year when the Fed begins cutting interest rates. Investors are already pricing in up\u200b to\u2063 six rate cuts in 2024.<\/p>\n<p>In some positive news for the\u2062 housing market, housing starts experienced a slight\u2064 increase this week. According to\u2064 a report \u200dfrom the Census Bureau, housing starts rose by 1.9% \u200bfrom November to the past month. Compared to \u200bDecember 2022, they saw a 6.1% \u200bincrease.<\/p>\n<p>For more \u200dinformation on this \u200btopic, <a href=\"https:\/\/www.washingtonexaminer.com\">click here to\u2064 read more \u200cfrom The Washington Examiner<\/a>.<\/p>\n<p><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- Responsive --><br \/>\n<ins class=\"adsbygoogle\"\n     style=\"display:block\"\n     data-ad-client=\"ca-pub-123456789\"\n     data-ad-slot=\"987654321\"\n     data-ad-format=\"auto\"\n     data-full-width-responsive=\"true\"><\/ins><br \/>\n<script>\n     (adsbygoogle = window.adsbygoogle || []).push({});\n<\/script>  <\/p>\n<h2> What alternative measures should the \u2064Federal Reserve consider to control inflation without negatively impacting the housing market<\/h2>\n<p><span>  Rise as well. Higher mortgage rates mean higher monthly payments, which\u200c can deter potential buyers from entering the market. \u2064This, in turn, leads to \u200ca decrease in\u200d demand for homes and a slowdown in sales.<\/p>\n<p>The decrease in\u200c existing home \u2064sales is concerning for a number of reasons. Firstly, it indicates a lack of confidence in the housing market. Potential buyers may\u2062 be hesitant to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/housing-starts-rise-in-september-amid-higher-mortgage-rates\/\" title=\"September saw an increase in housing starts despite the rise in mortgage rates.\">make large financial commitments<\/a> if they believe that the market is unstable. Additionally, \u2062existing\u200b homeowners may\u200c be reluctant to sell their \u200dproperties if they fear that they will not be able to find affordable or desirable new homes.<\/p>\n<p>The decline in home sales also has implications for the broader\u200d economy. The housing market contributes significantly to economic growth through various sectors. When home sales decline, it can have a negative effect on construction, real\u200c estate agents, and other related\u200b industries. Furthermore, lower home sales can lead to a decrease in home values, which impacts\u200c homeowners&#8217;\u2062 wealth and their ability to \u2063borrow against their homes.<\/p>\n<p>The key \u2062statistics further highlight the challenges facing\u200d the housing \u200cmarket. The decrease in total housing inventory indicates that \u200dthere are fewer homes\u2062 available for sale, which\u200b contributes to higher prices. The median price of an existing home increasing by 4.4% from the previous year further emphasizes the affordability issue for potential buyers. Additionally, the longer time homes are on the market suggests a \u200bslowdown in demand.<\/p>\n<p>To \u200caddress this issue, there needs to be a balance between the Federal Reserve&#8217;s efforts to combat inflation and the potential negative\u2064 impacts on the housing market. The Federal Reserve should\u2064 consider the \u2062consequences of <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/janet-yellen-as-congress-for-billions-to-help-other-countries-debt-relief-climate-change-initiatives\/\" title=\"Janet Yellen As Congress For Billions To Help Other Countries\u2019 \u2018Debt Relief,\u2019 \u2018Climate Change\u2019 Initiatives\">higher interest rates<\/a> on the housing sector and explore alternative measures to control inflation without stifling the housing\u200d market. Additionally, policymakers should focus on creating incentives for homeowners to sell their properties and for developers to increase housing supply.<\/p>\n<p>Overall, the decline in existing home sales\u2063 to the lowest level\u2062 in over a decade is a \u2062cause for concern. It\u200b highlights the impact of \u2062higher mortgage rates on the housing market and the broader economy. Policymakers and industry stakeholders must \u2063work together to find solutions that balance the need for inflation control with the stability and accessibility of the housing market.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Existing home sales in December dropped to the lowest level in over 10 years due to the housing market&#8217;s instability caused by increased mortgage rates. The National Association of Realtors revealed that home sales decreased by 1% to a seasonally adjusted annual rate of 3.78 million. Higher mortgage rates prevented potential buyers and prompted homeowners to reconsider selling<\/p>\n","protected":false},"author":2683,"featured_media":2315279,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[538],"tags":[],"class_list":["post-2153599","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-washington-examiner"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2153599","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\/2683"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2153599"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2153599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2153599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2153599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2153599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}