New home sales plummeted in April to their lowest since the onset of the pandemic amid a steep rise in mortgage rates and elevated prices. We expect sales to drop further in the coming months as a result of two potential 50-basis-point interest rate hikes from the Federal Reserve in June and ... READ MORE >
Real estate
Chart of the day: U.S. existing home sales fall again as rates rise
Sales of existing homes in the United States fell for the third straight month in April as the housing market continued to cool off amid steep mortgage rate increases. Total sales declined to 5.61 million on the month, down by 2.4% compared to March and by 5.9% from a year ago, according to data ... READ MORE >
Chart of the day: U.S. housing starts fall amid rising mortgage rates
Construction of new houses in the United States slowed in April as builders' sentiment soured on the spike in mortgage rates. Builders, expecting faster interest rate increases from the Federal Reverse to tackle inflation, are slowing down their plans for new supply. With demand cooling off, we should ... READ MORE >
Pending home sales fell back to pre-pandemic level amid rising rates
U.S. pending home sales fell 1.2% in March, declining for the fifth month in a row, as demand continued to slow due to high home prices and rising mortgage rates. The National Association of Realtors' index for pending home sales is a proxy for future sales of existing homes as about 80% of pending ... READ MORE >
Chart of the day: U.S. home prices hit record in March
Sales of existing homes fell by 2.7% to 5.77 million in March, the lowest since July 2020, as rising mortgage rates dampened demand. The median home price, however, hit a record high at $375,300, pointing to persistent housing shortages, according to data the National Association of Realtors released on ... READ MORE >
Housing starts moderated in March amid rising rates
Housing starts and permits inched up in March due to a boost from multifamily homes, beating market forecasts for significant declines in both series. New residential starts rose 0.3% on the month to a 1.79 million annualized rate, the highest since 2006. Building permits, an indicator of future ... READ MORE >
Chart of the day: Pending home sales drop again in February
Pending home sales in February dipped for the fourth straight month as depleted inventory and rising mortgage rates dampened sales. The number of contracts signed for homes dropped 4.1% in February, following a 5.7% decline in January, according to data from the National Association of Realtors ... READ MORE >
The housing market will endure interest rate hikes
Two years into the pandemic, the housing market remains on fire and shows few signs of receding. What was initially fueled by buyers' need for more space and a low interest rate environment has proven to have staying power. Now, with inflation hitting 7.9%, a 40-year high, in February, the Federal ... READ MORE >
Chart of the day: New home sales drop amid rising rates
New home sales posted the second consecutive month of decline in February as elevated prices and rising mortgage rates deterred buyers. Sales fell by 2% to 772,000 on an annualized rate, following a sharp 8.4% decrease in January, according to government data released on Wednesday. The decline, ... READ MORE >
Home sales dip in February amid rising prices and mortgage rates
Sales of existing homes dipped 7.2% in February after recording a sharp 6.6% rise in January, the National Association of Realtors reported on Friday. Elevated home prices and rising mortgage rates to above 4% for the first time since 2019 drove sales to decline on the month. Sales drops were seen from ... READ MORE >