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Tag: housing market

Home Construction Dipped Slightly in December | Economy
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Home Construction Dipped Slightly in December | Economy

New home construction slipped modestly in December as mortgage rates remained high, the Census Bureau and the Department of Housing and Urban Development reported on Thursday.Building permits declined 1.6% from a month earlier, and housing starts were down 1.4%. While the permit numbers came in below estimates, housing starts were better. Still, the numbers were a little better than estimates but still reflect the slowdown in the housing market from the Federal Reserve’s campaign to raise interest rates to arrest inflation. Mortgage rates have doubled in the past year, affecting the affordability of new homes.However, recent improvement in the trajectory of inflation over the past two months and a general slowdown in the economy have brought mortgage rates down by about one point and bu...
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...