Home » Economy » US home sales tumble for ninth month as mortgage rates bite

US home sales tumble for ninth month as mortgage rates bite

US existing home sales tumbled for a ninth straight month in October as the 30-year fixed mortgage...

👤 H K Badal18 Nov 2022 5:58 PM GMT
US home sales tumble for ninth month as mortgage rates bite


Despite weakening demand, housing supply remains tight, limiting the slowdown in house price inflation.


Share Post

US existing home sales tumbled for a ninth straight month in October as the 30-year fixed mortgage rate hit a 20-year high and prices remained elevated, pushing homeownership out of the reach of many Americans.

Existing home sales dropped 5.9 percent to a seasonally adjusted annual rate of 4.43 million units last month, the National Association of Realtors said on Friday (Nov 18). Outside the plunge during the initial phase of the COVID-19 pandemic in early 2020, this was the lowest level since December 2011.

Economists polled by Reuters had forecast home sales would tumble to a rate of 4.38 million units.

House resales, which account for a big chunk of US home sales, slumped 28.4 percent on a year-on-year basis in October. The report followed on the heels of news on Thursday that single-family homebuilding and permits for future construction tumbled to the lowest levels since May 2020. Housing inventory also declined.