U.S. Existing-Home Sales Fall for the Fifth Straight Month in June
U.S. Existing-Home Sales Fall for the Fifth Straight Month in June
Abstract
Key details: The median price for an existing home rose to a record $416,000 up 13.4% from June 2021. Expressed in terms of the months-supply metric, there was a 3-month supply of homes for sale in June, up from 2.6 months in May. Before the pandemic, a four-month supply was more the norm. All-cash transactions made up 25% of all transactions, unchanged from May. About 30% of homes were sold to first-time home buyers, up from 27% in the prior month. Borrowing costs are still high, with mortgage rates surging, making homes less affordable. The Mortgage Bankers Association said the average contract rate for a 30-year fixed-rate mortgage was 5.82%. Meanwhile, construction on new homes continues to fall in the month of June, coupled with increasing gloominess among homebuilders-both putting pressure on supply. What the realtors said: The drop in existing home sales was "Clearly due to the plunging affordability," Lawrence Yun, chief economist at the NAR, said, primarily driven by higher home prices and mortgage rates. Home sales were likely to continue to fall as long as mortgage rates increase.