Despite crashing in March, existing US Home Sales were expected to keep declining well into April because of mortgage rates that have done nothing but increase rapidly while mortgage applications collapse. Existing home sales fell to 5.77MM SAAR, a decline of -2.7% month-over-month, returning to levels not seen just following the pandemic in June 2020. This isn’t a new phenomenon, however, as existing home sales are now down year-over-year for the eighth straight month.
Meanwhile, while the pace of purchases begins to grind slower, the median existing-home price for all housing types in March 2022 was $375,300, an increase of 15% in relation to March 2021. This increase marks 121 consecutive months of year-over-year increases, the longest streak on record. As a result of the U.S. Federal Reserve increasing interest rates, many expect home purchases to contract by 10%, putting a damper on the recent rise in home prices many have come to expect over the last 10+ years.
Source: CNBC