U.S. existing home sales fall for 8th straight month
STORY: U.S. existing home sales dropped for an eighth straight month in September, falling to the lowest level in 10 years, with the exception of a short-lived plunge in 2020 - at the height of the global health crisis.
The National Association of Realtors said on Thursday that existing home sales fell 1.5% last month from the prior month, as rapidly rising mortgage rates coupled with still-elevated home prices have pushed affordability beyond the reach of many prospective buyers.
On a year-over-year basis, the decline is far steeper. Home resales, which account for the bulk of U.S. home sales, decreased by nearly 24%.
The drops come as the Federal Reserve wages an aggressive battle against the highest inflation in 40 years by raising interest rates at the swiftest pace in a generation or more.
Its benchmark rate is expected to go even higher, likely ending the year in the mid-4% range, based on Fed officials' own projections and recent comments.
The housing market has taken a pounding as a result.
Data earlier this week showed confidence among homebuilders eroding for the 10th straight month in October.
Meanwhile, mortgage rates have soared even higher than U.S. Treasury yields amid rising interest rates and no real signs of inflation slowing.
The 30-year fixed mortgage rate averaged close to 7% in the latest week, the highest in 20 years.
