Home sales declined in the United States

Sales of pre-occupied homes in the United States fell to their lowest level in nearly 30 years in 2023, as both rising prices and mortgage rates coupled with a lack of supply put purchasing out of reach for many Americans. Went.

The National Association of Realtors (NAR) reported Friday that sales last year totaled 4.09 million, down 18.7% from 2022. It was the lowest home sales year since 1995 and the largest annual decline since 2007, at the start of the decline. Of recent years.

The national average price rose just less than 1% last year to a record $389,800, NAR said.

The sales decline last year repeats an 18% annual decline in 2022, when mortgage rates began rising, more than doubling by the end of the year. This trend continued through 2023, with the average 30-year mortgage rate rising to 7.79% in late October, the highest level since the late 2000s.

Rapidly rising home loan costs along with rising prices over the years have limited the purchasing power of home seekers. The lack of homes for sale also marginalized many aspiring buyers or sellers.

Mortgage rates have generally declined since November, echoing a decline in the yield on the 10-year Treasury bond, which lenders use as a guide to determine borrowing costs. Yields fell on expectations that inflation would ease enough for the Federal Reserve to start cutting interest rates this year.

The average rate on a 30-year home loan was 6.6% this week, according to mortgage buyer Freddie Mac. If rates continue to fall, as many economists predict, it will boost demand ahead of home buying season. It traditionally starts in late February.