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Friday, December 23, 2022 • B3
U.S. HOME SALES FELL IN NOVEMBER creased apartment building construction should lead to a pullback in rents, which will help lower a key inflaLOS ANGELES — The housing market slump deeption barometer. That could pave the way for the Fed to ened in November, as sales ease up on its campaign to of previously occupied U.S. hike rates, which “should homes slowed for the tenth moderate mortgage rates.” consecutive month — the “And if that’s the case, I longest such stretch on rethink the housing market cords going back to 1999. will see some steady reExisting home sales fell 7.7 percent last month from bound in terms of sales acOctober to a seasonally adtivity,” Yun said. On average, homes sold in justed annual rate of 4.09 just 24 days of hitting the million, the National Associmarket last month, up from ation of Realtors said 21 days in October, the NAR Wednesday. That’s a slower said. sales pace than what econoThat’s still a relatively mists had expected, accordquick turnaround, as before ing to FactSet. the pandemic homes typiSales plunged 35.4 percent from November last cally sold more than 30 days year. Excluding the steep after being listed for sale. sales downturn that ocThe inventory of homes on the market declined for curred in May 2020 at the the fourth consecutive start of the pandemic, sales month. Some 1.14 million are now at the slowest anTED SHAFFREY / ASSOCIATED PRESS FILE homes were on the market nual pace since November by the end of November. 2010, when the housing marA “For Sale” sign stands in front of a house in Rochester, New York, on Jan. 17, 2022. That amounts to a 3.3 ket was mired in the afterfewer buyers and fewer months’ supply at the cur6.31 percent, more than dou- early November. math of the foreclosure cent to 5.25 percent by the transactions, yet due to the ble the 3.12 percent average Mortgage rates are likely crisis of the late 2000s. end of 2023. rent sales pace. In a more limited supply some multiStill, home prices continWhile mortgage rates rate a year earlier, according to remain a significant hurbalanced market between ued to rise last month, ple offers are still happening to mortgage buyer Freddie dle for some time as the Fed- don’t necessarily mirror the buyers and sellers, there is a Fed’s rate increases, they Mac. five- to six-month supply. though at a far smaller rate and homes are still selling eral Reserve has tend to track the yield on That increase can add The combination of than just a few months ago. reasonably fast,” Yun said. consistently signaled its inthe 10-year Treasury note. higher mortgage rates and The national median home November’s housing snap- hundreds of dollars to tent to keep raising shortrising prices continue to sales price rose 3.5 percent term rates in a bid to squash The yield is influenced by a shot is the latest evidence of monthly mortgage payvariety of factors, including keep many first-time buyers in November from a year a deepening rut from what ments and also can discour- the hottest inflation in deexpectations for future infla- on the sidelines. They repreearlier, to $370,700. was a blistering sales pace age homeowners who cades. Nearly a quarter of homes at the start of the year, when locked in a far lower rate the The federal funds rate tion and global demand for sented 28 percent of sales that sold last month fetched mortgage rates hovered last couple of years from now stands at a range of 4.25 U.S. Treasurys. last month, unchanged from more than their asking price, near historic lows. buying a new home. percent to 4.5 percent, the Yun is forecasting that the October, the NAR said. By said Lawrence Yun, the The average rate on a 30Though they’ve dehighest level in 15 years. Fed average rate on a 30-year historical standards, firstNAR’s chief economist. year mortgage was slightly policymakers have forecast mortgage may fall to around time buyers typically made clined in recent weeks, “We have this strange above 3 percent in early Jan- mortgage rates averaged that the central bank’s rate 5.5 percent by next spring or up as much as 40 percent or market where there are summer. His rationale: Inmore of transactions. 7.08 percent as recently as will reach a range of 5 peruary. Last week, it was at Alex Veiga ASSOCIATED PRESS
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Apply online www.kauaicreditunion.org Average long-term mortgage rate falls for a 6th straight week ASSOCIATED PRESS
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WASHINGTON — The average long-term U.S. mortgage rate declined for the sixth straight week, giving potential homebuyers a tiny amount of relief after rates topped out over 7 percent last month. Mortgage buyer Freddie Mac reported Thursday that the average * APR=Annual Percentage Rate. Federally insured by NCUA. Advertised rate based on the benchmark 30-year rate scores of 750+ and a 12-month lending period. Rates are subject to change on credit dipped to 6.27 percent this week from 6.31 percent last week. A year ago the average rate was 3.05 percent. The average long-term rate reached 7.08 percent in late October and again in early November as the Federal Reserve has continued to crank up its key lending rate this year in an effort to cool the economy and tame inflation. Mortgage rates are still more than double what they were a year ago, mirroring a sharp rise in the yield on the 10-year Treasury note. The yield is mostly influenced by global demand for U.S. Treasurys and investor expectations for future inflation, which heighten the prospect of rising interest rates overall. The Federal Reserve raised its * APR=Annual Percentage Rate. Federally insured by NCUA. Advertised rate based rate again last week by 0.50 percentage points, its seventh inon credit scores of 750+ and a 12-month lending period. Rates are subject to change crease this year. That pushed the central bank’s key rate to a range of 4.25 percent to 4.5 percent, its highest level in 15 years. More surprisingly, the policymakers forecast their key shortterm rate will reach a range of 5 percent to 5.25 percent by the end of 2023. That suggests the Fed is poised to raise its rate by an addi* APR=Annual Percentage Rate. Federally insured by NCUA. Advertised rate based tional three-quarters of a point and on credit scores of 750+ and a 12-month lending period. Rates are subject to change leave it there.
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