Home Sales Fall in South & West & Rise Elsewhere

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Mortgage and Lending with The Federal Savings Bank/Lending in 50 states NMLS # 109616

Existing Home Sales fell 2.4% in April from March to an annual rate of 5.61 million units versus 5.65 million expected and fell three months in a row. Sales were down 5.9% from April 2021. Sales fell in the South and West and rose modestly in the Northeast and Midwest. The median home sale price was $391,200, up 14.8% from April 2021 ($340,700) marking 122 consecutive months of year-over-year increases, the longest-running streak on record. Supply continues to run low with 2.2 months of homes for sale on the market, below the normal pace of six months.

Home borrowing costs paused and inched lower this week after the significant rise seen from a year ago. Freddie Mac reports that the 30-year fixed-rate mortgage slipped to 5.25% from 5.30% last week with an average of 0.9 in points and fees. A year ago the rate was 3%. The 15-year fell to 4.43% from 4.52%, also with a 0.9 point. A year ago that 15-year was 2.29%. Sam Khater, Freddie Mac’s Chief Economist said, "Economic uncertainty is causing mortgage rate volatility," said Sam Khater, Freddie Mac’s Chief Economist, "As a result, purchase demand is waning, and homebuilder sentiment has dropped to the lowest level in nearly two years. Builders are also dealing with rising costs, meaning this posture is likely to continue."

Redfin reports growth in median asking rents slowed for the first time in a year in April, up 15% from the 17% increase seen annually in March. However, in Austin, Portland and South Florida rents surged more than 30%. Of the the 50 most-populous regions in the country, only three saw rents decline in April from a year ago. "The fact that rents are growing at a slower pace may be a very early sign that the Fed’s tactic of raising interest rates to quell inflation is working," said Redfin Chief Economist Daryl Fairweather. "However, rents are still growing at nearly double the rate of overall inflation."

 

Sales of existing homes decline. Home borrowing costs inch lower. Rising rental prices ease.

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