Categories Analysis, U.S. Markets News

Affordability takes a beating as home prices, mortgage rate zoom

A key area of the economy that remained subdued this year is the housing sector, even while overall growth gathered momentum. The primary factors that dissuade prospective buyers from owning a house are the rising prices and  interest rates. Affordability is further squeezed by high mortgage costs, while the unfavorable inventory situation adds to the overall housing slump.

However, data published by the National Association of Realtors on Thursday came as a relief to the ailing sector, revealing an unexpected but small increase in the number of contracts signed for buying existing homes. The agreements to purchase previously owned homes edged up 0.5% sequentially last month, defying expectations for a modest decline.

Meanwhile, the number of such contracts dropped 1% compared to September 2017 –  marking the ninth consecutive fall – which indicates the positive trend might not be sustained in the coming months.

Latest data reveal an unexpected but small increase in the number of contracts signed for buying existing homes

A region-wise break-up of last month’s numbers shows a mixed trend, with Northeast registering a 0.4% decline and Midwest witnessing a 1.2% increase. Year-over-year, the two key markets recorded declines of a 2.7% and 1.1% respectively. With a 1.4% decrease, South registered the biggest monthly fall. West, where homes are the most expensive, jumped 4.5% sequentially but dropped 7.4% compared to last year.

There have been signs of a recovery on the supply front since the beginning of the second half, but by that time affordability came under more pressure. The price hike brings cheer only to the realtors and those who have already bought residential units at reasonable prices. However, some surveys suggest that prices have started cooling in several US cities, in response to the downbeat buyer sentiment.

Economy gathers steam; Q2 GDP growth is quickest since 2014

Meanwhile, experts dismiss the concerns that a further tightening of the market would lead to a bubble-like situation akin to the sub-prime crisis more than a decade ago, citing the underlying stability of the sector and the strong economy.

Earlier, statistics published by the Census Department showed that new home sales dropped 5.5% in September, compared to August, and 13% year-over-year. The number of persons filing for mortgage applications was unchanged from September 2017.


Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

INTU Earnings: Intuit Q3 2024 revenue and adj. profit top expectations

Intuit Inc. (NASDAQ: INTU) Thursday reported an increase in adjusted earnings and revenues for the third quarter of 2024. The results also exceeded analysts' estimates. At $6.74 billion, the Mountain

After blowout quarter, Nvidia (NVDA) looks set to continue riding the AI wave

Shares of NVIDIA Corporation (NASDAQ: NVDA) rallied this week after the semiconductor giant reported robust first-quarter numbers. Being a first mover in artificial intelligence chips, the company is spearheading the

Target Corp. (TGT): A brief look at the retailer’s performance in Q1 2024

Shares of Target Corporation (NYSE: TGT) rose over 1% on Thursday. The stock has dropped over 11% in the past one month. The company delivered mixed results for the first


  1. Pingback: Finance degree
  2. Pingback: Character building
  3. Pingback: Pharmacognos
  4. Pingback: led luci camera
  5. Pingback: Fiverr Earn
  6. Pingback: Fiverr Earn
  7. Pingback: Fiverr Earn
  8. Pingback:
  9. Pingback: endopump buy
  10. Pingback:
  11. Pingback:
  12. Pingback:
  13. Pingback:
  14. Pingback: aussie doodle
  15. Pingback: YouTube SEO
  16. Pingback: frenchie doodle
  17. Pingback: crypto news
  18. Pingback: sorority necklaces
  19. Pingback: future university
  20. Pingback: french bulldogs
  21. Pingback: lean manufacturing
  22. Pingback: Piano relocation
  23. Pingback: FUE
  24. Pingback: FUE
  25. Pingback: FUE
  26. Pingback: Moving assistance
  27. Pingback: where is bali
  28. Pingback: Classic Books 500
  29. Pingback: FiverrEarn
  30. Pingback: FiverrEarn
  31. Pingback: FiverrEarn
  32. Pingback: FiverrEarn
  33. Pingback: partners
  34. Pingback: kerassentials
  35. Pingback: Tips
  36. Pingback: FiverrEarn
  37. Pingback: live sex cams
  38. Pingback: FiverrEarn
  39. Pingback: FiverrEarn
  40. Pingback: FiverrEarn
  41. Pingback: FiverrEarn
  42. Pingback: FiverrEarn
  43. Pingback: FiverrEarn
  44. Pingback: FiverrEarn
  45. Pingback: FiverrEarn
  46. Pingback: FiverrEarn
  47. Pingback: FiverrEarn
  48. Pingback: email
  49. Pingback: FiverrEarn
  50. Pingback: FiverrEarn
  51. Pingback: cheap sex cams
  52. Pingback:
  53. Pingback: dog probiotics
  54. Pingback: live sex cams
  55. Pingback: Freeze dried water
  56. Pingback: frt trigger
  57. Pingback: abogado fiscalista
  58. Pingback: 늑대닷컴
  59. Pingback: Hold and win slot
  60. Pingback: nangs near me
  61. Pingback: allgame
  62. Pingback: 918kiss
  63. Pingback: หวย24
  64. Pingback: Best Korean makeup
  65. Pingback: pg slot
  66. Pingback: aplikasi game slot
  67. Pingback: catskills hotel
  68. Pingback: itsMasum.Com
  69. Pingback: Nangs delivery
  70. Pingback: Skywhip tanks
  71. Pingback:
  72. Pingback: talktoastranger
  73. Pingback: best job site

Comments are closed.

Add Comment
Viewing Highlight