Existing home-sales, the largest segment of the housing market, has reached its peak and will no longer contribute to the U.S. economy’s growth according to economists at Bank of America/Merril Lynch.
“We are calling it,” the report read. “Existing home sales have peaked.”
This conclusion was drawn after sales of existing properties have consistently failed to top last November’s peak of 5.72 million units annually. When coupled with a looming increase in mortgage rates and Zillow reporting an increasing number of price reductions, the economists cited in the report speculate the housing market is simply in a ‘neutral’ state – neither growing nor declining.
The silver lining according to the findings is that demand for housing continues to remain particularly high.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.625 percent, 15-year rates are near 4.125 percent and the 5-year ARM is averaging 4.125 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.