Are higher rates taking a bite out of home sales?
“U.S. home resales fell in September and prices rose at their slowest pace in five months, the latest signs higher mortgage rates were taking some edge off the off the housing market recovery,” Reuters reports today. Economists told Reuters that the results could be chalked up to rising interest rates, stagnant salaries and high real estate prices. Here’s more:
The National Association of Realtors said on Monday home sales fell 1.9 percent to an annual rate of 5.29 million units. August’s sales pace was revised down to 5.39 million units from the previously reported 5.48 million units.
Economists polled by Reuters had expected home resales to fall 2.9 percent to a 5.30 million-unit rate.
Calculated Risk adds: “Inventory increased 1.8% year-over-year in September compared to September 2012. This is the first year-over-year increase since early 2011 and indicates inventory bottomed earlier this year.”