Existing home sales rebound from 13-year low amid cooling mortgage rates
FOX Business real estate contributor Katrina Campins discusses whether the housing market is on the verge of a boom after the Fed signaled lower interest rates on 'Making Money.'
U.S. existing home sales rebounded in November from the lowest level in 13 years as easing mortgage rates lured would-be homebuyers back into the market.
Sales of previously owned homes rose 0.8% in November from the previous month to an annual rate of 3.82 million units, snapping a five-month losing streak, according to new data released Wednesday by the National Association of Realtors (NAR). It marked the slowest pace of sales since August 2010.
On an annual basis, existing home sales remain down 7.3% when compared with November 2022.
«The latest weakness in existing home sales still reflects the buyer bidding process in most of October when mortgage rates were at a two-decade high before the actual closings in November,» said Lawrence Yun, NAR’s chief economist. «A marked turn can be expected as mortgage rates have plunged in recent weeks.»
HOME FORECLOSURES ARE ON THE UPSWING NATIONWIDE
There were about 1.13 million homes for sale at the end of November, according to the report, down 1.7% from the previous month but up 0.9% from the same time one year ago.
A sign outside a sold home in Atlanta on Sept. 6, 2023. (Photographer: Elijah Nouvelage/Bloomberg via Getty Images / Getty Images)
The decline in inventory helped to drive prices higher last month. The median price of an existing home sold in October was about $387,600 – up 4% from one year ago.
«Home prices keep marching higher,» Yun said. «Only a dramatic rise in supply will dampen price appreciation.»
Homes sold on average in just 25 days last month. While that is down slightly
Read more on foxbusiness.com
