Posted 48 days ago
Sales of existing homes tumbled last month for the fourth month in a row as housing became less affordable across the country.
Existing-home sales declined by 3.4% in May to a seasonally adjusted annual rate of 5.41 million, according to a report by the National Association of Realtors released Tuesday. Sales were down 8.6% from a year ago.
Additionally, the NAR said the median existing-home sales price rose to $407,600, up 14.8% for the 12 months ending in May. The hike marks 123 consecutive months of year-over-year price increases, the longest recorded streak.
Mortgage rates rose quickly over the past few months as the Federal Reserve conducted three interest rate hikes to curb inflation.
As of Tuesday, the average 30-year fixed-rate mortgage was 5.78%, up more than 2.8 percentage points from a year before. Last week, the Fed announced it would jack up its target interest rate (which is a different, very short-term rate) by a two-thirds of a percentage point, its most aggressive increase since 1994.
YELLEN AND FED ACKNOWLEDGE SOARING INFLATION WILL LAST WELL BEYOND MIDTERM ELECTIONS
“Home sales have essentially returned to the levels seen in 2019, prior to the pandemic, after two ... (Read more)