Wednesday, October 21, 2020

Tag: Ultra-Low Mortgage Rates No Relief for Home Sales

Ultra-Low Mortgage Rates No Relief for Home Sales

by Wolf Richter, Wolf Street:

Surging prices are a demand killer, but real estate industry laments the medicine didn’t work.

The relentlessness of falling home sales is starting to baffle the real estate industry that had expected plunging mortgage rates to fire up sales: Across the US, sales of “existing homes” (previously owned single-family houses, townhouses, condos, and co-ops) in June dropped 2.2% from June last year, to a seasonally adjusted annual rate of 5.27 million homes, according to the National Association of Realtors. It was the 16th month in a row of year-over-year declines (data via YCharts):