Housing market has hit 'rock bottom,' says Redfin CEO Glenn Kelman

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This is turning out to be a long, cool summer --- at least where the housing market is concerned.

Mortgage rates have stayed around the 7% range over the last few days, making it more expensive to buy a home for many aspiring homeowners. Even if buyers come to terms with high rates, home listings have been scarce, as homeowners hold out on listing and selling their homes.

Sales of previously owned homes fell by 3.3% to an annual rate of 4.16 million in June, the National Association of Realtors said Thursday. July data will be released next week. As Bill McBride, author of the economics blog Calculated Risk, puts it, with the 30-year fixed interest rate at 7.24%, a $500,000 home with 20% down would equate to a rough monthly payment of $2,700.

In the past, when people sought to live on their own, move out of their parents’ place, or transition from living with a roommate to living on their own, they tended to move towards places that had cheaper options.

 

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