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Tag: home prices

Pending Homes Fall 4.6% in October, Fifth Month of Decline | Economy
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Pending Homes Fall 4.6% in October, Fifth Month of Decline | Economy

Pending home sales fell for the fifth consecutive month in October, as high mortgage rates dampened demand, the National Association of Realtors reported on Wednesday.Three of four U.S. regions recorded month-over-month decreases, but the entire country saw year-over-year drops in transaction activity."October was a difficult month for home buyers as they faced 20-year-high mortgage rates," said NAR Chief Economist Lawrence Yun. "The West region, in particular, suffered from the combination of high interest rates and expensive home prices. Only the Midwest squeaked out a gain."The housing sector has been the area of the economy most affected by higher interest rates as the Federal Reserve attempts to corral inflation, now running at a 7.7% annual pace.“Contract signings for existing hom...
US Mortgage Rates Top 7% for the First Time in 2 Decades
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US Mortgage Rates Top 7% for the First Time in 2 Decades

By MATT OTT and ALEX VEIGA, AP Business WritersWASHINGTON (AP) — The average long-term U.S. mortgage rate topped 7% for the first time in more than two decades this week, a result of the Federal Reserve's aggressive rate hikes intended to tame the nation's stubbornly high inflation.Mortgage buyer Freddie Mac reported Thursday that the average on the key 30-year rate jumped to 7.08% from 6.94% last week. Last year at this time, rates on a 30-year mortgage averaged 3.14%.Higher mortgage rates reduce homebuyers’ purchasing power, resulting in fewer people being able to afford to buy a home at a time when home prices continue to climb, albeit more slowly than earlier this year. The combination of higher rates and home prices means a typical mortgage payment for a homebuyer is up hundreds of...