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22/05/24
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April Existing Home Sales in US Drop For 2nd Straight Month
In April, existing home sales in the U.S. fell unexpectedly as higher house prices and mortgage rates weighed on demand.
On Wednesday, the National Association of Realtors said home sales dropped by 1.9% in April to a seasonally adjusted rate of 4.14M units annually. Economists had expected home resales would increase to a rate of 4.21M units.
Sales dropped for the 2nd consecutive month despite supply improving. Sales fell 1.0% in the Midwest, which is seen as the most affordable area, and dropped 1.6% in the South, which is densely populated. They tumbled 2.6% in the West and declined 4.0% in the Northeast.
The housing market has declined after residential investment grew at the fastest rate in over 3 years in Q1 amid mortgage rates resurging.
Data from mortgage finance agency Freddie Mac showed that the average rate on the common 30-year fixed-rate mortgage has battled to drop to lower than 7% after in early May soaring to over a 5-month high of 7.22%.
Last week, government data showed single-family building permits and housing starts dropped in April. In May, homebuilder confidence deteriorated substantially.
Home resales, which make up a big portion of U.S. housing sales, in April dropped 1.9% on a year-on-year basis.
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