Compass co-founder and executive director Robert Reffkin breaks down January the existing sale of a house on ‘Claman County’.
Contracts to buy previously homeowners fell on a record low in January, as potential buyers were limited by higher mortgage rates and houses’ prices.
The National Real Estate Association (NAR) announced on Thursday that his waiting for sales of the Honorable House, based on signed contracts, reduced 4.6% last month to 70.6, which is all the time.
The economists surveyed by Reuters had the forecasts of the contract, which became sale after a month or two, so they fell by 1.3%in January. Waiting for the sale of the house They were 5.2% compared to one year.
“It is unclear if the coldest January has contributed to the market in 25 years, and if so, expect more sales activity in the coming months,” said the main economist Nar Lawrence Yun. “However, it is obvious that elevated home prices and greater mortgages have strained their accessibility.”
Hypotics rates fall for the fifth week in a row, hover close to 7%
The sale of the house fell to the lowest low level in January, according to a report of the National Real Estate Association. (Joe Radle / Getty Images / Getty Images)
Mortgage rates In January, it ranges from 6.91% to 7.04%, and NAR noted that compared to a year ago, monthly mortgage payments at a home of $ 300,000 increased by an additional $ 50 to $ 1,590. The mortgage rates have since decreased slightly to about 6.85%in February.
Throughout the country, the number of signed contracts fell in the Middle West, South and West, but rose slightly in the northeast.
“Even a slight reduction of the mortgage rates are likely to light the customer interest, given increasing income, increased jobs and multiple supplies,” Yun added.
Existing house sales fall to the lowest level in almost 30 years
The sale of the house fell in all regions of the country except northeast. (David Paul Morris / Bloomberg via Getty Images / Getty Images)
The mortgage rates remained elevated even as Federal reserves Reduce your reference interest rate for 100 base points from September.
Since then, the central bank has stopped decreasing the rate in January, while the impact of the policies of Trump’s administration on inflation, as tariffs, reduction of taxes and masses Deportations of illegal immigrants Economists view the potential suppression of inflation.
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The mortgage rates are accompanied by a 10-year cash register note, which has passed in recent days in the midst of softer economic data. However, Concern about inflation It is likely to limit the scope of the fall, while the expectations of consumers increased to fear that the tariffs would increase the price of goods.
Reuters contributed to this report.
