Increasing cost of housing squeezes Americans out of market
Sales of existing homes in the U.S. fell last month to their lowest level in more than 16 years. That's according to a new report by the National Association of Realtors. In October alone, sales dropped to 3.75 million homes, an 8.8% drop compared with the same time last year. Stephanie Sy reports on what's driving the decline.
The sales of existing homes in the United States dropped to their lowest level in over 16 years, according to a new report by the National Association of Realtors. In October, sales fell to 3.75 million homes, marking an 8.8% decrease compared to the same period last year. Stephanie Sy of NBC News reported that high mortgage rates, currently at 7% for a 30-year fixed mortgage, are a significant factor in this decline.
Despite dropping prices in some markets, homes remain unaffordable for many potential buyers. Several individuals interviewed by Sy in various cities expressed concerns about the high mortgage rates and the affordability of buying homes in expensive coastal cities. They mentioned relocating to lower-cost areas or considering alternative financing options, such as veterans' loans, to make homeownership more feasible.
Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors, agreed that the housing market is currently challenging for both buyers and sellers, particularly first-time homebuyers who find it difficult to afford homes and save for down payments amid rising costs and limited inventory.
Lautz also noted that the supply crunch is driven by both a lack of new construction and people holding onto their homes due to low interest rates, rather than a shortage of available properties.
Written by urgent.news from PBS NewsHour's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
