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Home sales fall more than expected

Posted by Mehran Aram on Sat, Jul 27, 2019 @ 05:07 AM

Sales of previously owned homes in the U.S. decline last month, marking the sixteenth consecutive month of year-over-year declines. High home prices and low inventory continues to keep potential home buyers on the sidelines. The 1.7 percent monthly drop in home sales in June is far greater than the 0.6 percent decline predicted by economists in a survey by The Wall Street Journal.

Although the rate at which home prices are rising has slowed over the past year, the median home price in the U.S. remains 4.3 percent higher than the same month in 2018. Prices for existing single-family homes have climbed every month for the past 88 months.

Driving prices higher is the short-supply of homes on the market. Inventory levels were at 4.4 months nationally. Experts cite 6 months as a healthy supply.

Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 4.00 percent and 15-year rates are near 3.375 percent.

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Topics: home sales, home prices, Mortgage rates, median home price, Low Inventory