U.S. existing home sales slipped 0.7% last month to a seasonally adjusted annual rate of 4.04 million units, the National Association of Realtors said on Thursday
U.S. existing home sales unexpectedly fell in August as persistently tight supply boosted prices, and a further decline is likely amid a resurgence in mortgage rates.
Home resales, which account for a big chunk of U.S. housing sales, dropped 15.3 per cent on a year-on-year basis in August. The U.S. central bank on Wednesday left its benchmark overnight interest rate unchanged in the 5.25 per cent-5.50 per cent range. The Fed, however, stiffened its hawkish stance, projecting another hike by year end and monetary policy staying significantly tighter through 2024 than previously expected. The Fed has raised the policy rate 525 basis points since March 2022.
“Home prices continue to march higher despite lower home sales,” said Lawrence Yun, the NAR’s chief economist. “Supply needs to essentially double to moderate home price gains.”