The average
"The 30-year fixed-rate mortgage continues to remain just shy of 7% and is adversely impacting the housing market in the form of declining demand,"
"Additionally, homebuilder confidence has dropped to half what it was just six months ago, and construction, particularly single-family residential construction, continues to slow down."
Even the 15-year fixed mortgage rate average, at 6.23%, is steep compared to recent years.
The
"The housing sector continues to undergo an adjustment due to the continuous rise in interest rates, which eclipsed 6% for 30-year fixed mortgages in September and are now approaching 7%," association Chief Economist
"Expensive regions of the country are especially feeling the pinch and seeing larger declines in sales."
Home prices are still rising along with mortgage interest rates. The median
Housing inventory on the market in September stood at 1.25 million units, down 2.3% from August. The Realtors said unsold home inventory is at a 3.2 month supply at the current sales pace.
"Despite weaker sales, multiple offers are still occurring with more than a quarter of homes selling above list price due to limited inventory," Yun said.
"The current lack of supply underscores the vast contrast with the previous major market downturn from 2008 to 2010, when inventory levels were four times higher than they are today."
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