US home sales fell in August despite easing mortgage rates, more homes on market

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Home Sales Nouvelles

Mortgage Rates,Inventory,Home Prices

Sales of previously occupied U.S. homes fell in August to the slowest annual pace in nearly a year even as mortgage rates eased and the supply of properties on

the market continued to rise.

The Federal Reserve cut its main interest rate for the first time in more than four years Wednesday. Fed officials also signaled they expect further cuts this year and in 2025 and 2026. The rate cuts should, over time, lead to lower borrowing costs on mortgages. Economists are generally projecting that the average rate on a 30-year mortgage will remain above 6% this year.

All told, there were about 1.35 million unsold homes at the end of August, up 0.7% from July and 22.7% from August last year, NAR said. Homeownership is still out of reach for many Americans after years of surging home prices. Consider, the median U.S. home sales price has jumped 49% over the past five years, while wages grew by 25% in the same period.

 

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