Home sales on the secondary market are falling for the ninth month in a row in October.
Sales of previously owned homes in the USA are falling for the ninth consecutive month in October, highlighting how higher mortgage rates are undermining the housing market. All four major regions of the US recorded monthly and year-over-year declines.
Sales of previously owned homes in the USA declined by 5.9% in October compared with the previous month to a seasonally adjusted annualized figure of 4.43 million, the National Association of Realtors said on Friday. That was slightly better than forecasts of economists polled by Bloomberg, up 6.6% m/m.
Overall, sales were down by 28.4% compared with the previous year.
The numbers again show that the sharp market slowdown that began earlier this year is continuing as the Federal Reserve System tightens monetary policy to help bring down inflation, which is also pushing up mortgage rates. A sharp rise in interest rates has turned home purchases upside down as more potential buyers are pushed out of the market.
Have you noticed a drop in sales? What do you think of it?