B4 • Friday, October 20, 2023
THE GARDEN ISLAND
thegardenisland.com
HOME SALES FELL AGAIN IN SEPTEMBER
prospective buyers, a chronic shortage of homes for sale continues to keep the market competitive, especially for the most affordable homes. Homes sold last month typically within just 21 days Alex Veiga after hitting the market, and AP BUSINESS WRITER about 26 percent of homes sold for more than their list LOS ANGELES — Sales of price, the NAR said. previously occupied U.S. All told, there were 1.13 homes in September fell for million homes on the marthe fourth month in a row, grinding to their slowest ket by the end of last pace in more than a decade month, up 2.7 percent from as prospective homebuyers August, but down 8.1 pergrapple with surging mortcent from September last year, the NAR said. That gage rates and a near hisamounts to just a 3.4-month toric-low level of properties supply, going by the current on the market. sales pace. In a more balExisting home sales fell 2 percent last month from Auanced market between buygust to a seasonally aders and sellers, there is a 4- to 5-month supply. justed annual rate of 3.96 The combination of million, the National Associhigher mortgage rates and ation of Realtors said rising prices has particuThursday. That’s just above the 3.9 million unit pace larly hurt first-time homeGENE J. PUSKAR / ASSOCIATED PRESS FILE that economists were exbuyers who don’t have any home equity to put toward pecting, according to A housing development in Middlesex Township, Pa., is shown on Oct. 12, 2022. their down payment. They FactSet. But it’s the slowest from September last year to high interest rate, but sales pace since October dreds of dollars a month in and what the Fed does with accounted for just 27 per2010, when the market was $394,300. It slipped 3.1 per- things should be improving costs for borrowers, limitinterest rates can influence cent of all homes sold last still choked by foreclosures cent from August. rates on home loans. next year.” month. Historically, it was ing how much they can affollowing the housing bust The central bank has alThe weekly average rate ford in a market already out not unusual for them to “Clearly, the story of limseveral years earlier. on a 30-year mortgage of reach for many Ameriited inventory and rising ready pulled its main inter- make up 40 percent of sales. Sales sank 15.4 percent moved above 7 percent in Meanwhile, house huntand rising mortgage rates cans. They also discourage est rate to the highest level compared with the same August, when many of the continues to hinder the homeowners who locked in since 2001 in hopes of extin- ers who can afford to bymonth last year and are home sales that were final- rock-bottom rates two home sales market,” said guishing high inflation, and pass financing and pay in down 21 percent through Lawrence Yun, the NAR’s years ago from selling. has indicated it may cut cash are taking up a bigger ized in September would the first nine months of the chief economist. Mortgage rates have rates by less next year than share of the market. Last have gone under contract. year versus the same peYun also said he expects It has remained above that been climbing along with earlier expected. The threat month, all-cash deals acmortgage rates will ease by threshold since, surging the 10-year Treasury yield, of higher rates for longer riod in 2022. counted for 29 percent of which lenders use as a pushed Treasury yields to this week to 7.63 percent, Despite the housing mar- next spring. all home sales, the NAR “I think this is the top,” their highest levels in more said. Typically, all-cash the highest level since 2000, guide to pricing loans. Inket slump, home prices according to mortgage transactions tend to reprekept climbing versus a year he said. “Maybe we’ll have vestors’ expectations for fu- than a decade. a few months of very diffiWhile surging mortgage buyer Freddie Mac. ago. The national median ture inflation, global sent about 20 percent of rates have shut out many High rates can add hunsales price rose 2.8 percent cult sales because of this demand for U.S. Treasurys sales.
Surging mortgage rates, rising prices discouraged homebuyers
Long-term U.S. mortgage rate surges to 7.63 percent ASSOCIATED PRESS LOS ANGELES — The cost of financing a home surged again this week with the average long-term U.S. mortgage rate at its highest level since December 2000. The average rate on the benchmark 30-year home loan rose to 7.63 percent from 7.57 percent last week, mortgage buyer Freddie Mac said Thursday. A year ago, the rate averaged 6.94 percent. Borrowing costs on 15-year fixed-rate mortgages, popular with homeowners refinancing their home loan, also increased. The average rate rose to 6.92 percent from 6.89 percent last week. A year ago, it averaged 6.23 percent, Freddie Mac said. As mortgage rates rise, they can add hundreds of dollars a month in costs for borrowers, limiting how much they can afford in a market already out of reach for many Americans. They also discourage homeowners who locked in far low rates two years ago from selling. The average rate on a 30-year mortgage is now more than double what it was two years ago, when it was just 3.09 percent. This is the sixth consecutive week that mortgage rates have moved higher. The weekly average rate on a 30-year mortgage has remained above 7 percent since mid-August and is now at the highest level since Dec. 1, 2000, when it averaged 7.65 percent. “Mortgage rates continued to approach 8 percent this week, further impacting affordability,” said Sam Khater, Freddie Mac’s chief economist.