U.S. Housing Market Conditions Worsening

Just as the US housing market appeared more promising for prospective buyers, market conditions are melting down again, with mortgage rates and home prices rising, while the inventory of available homes is still declining, Janet H. Cho reported for Barron’s Daily.

Photo Insert: Mortgage rates jumped to an average of 6.81% for a 30-year fixed-rate loan for the week ending July 27, up from the prior week’s 6.78%.

Mortgage rates jumped to an average of 6.81% for a 30-year fixed-rate loan for the week ending July 27, up from the prior week’s 6.78%. The Federal Reserve raising interest rates again suggests that mortgage rates will remain high this year.

The median home price had been on the decline for six straight weeks but flatlined for the week ending July 22, with prices tying last year’s levels.

The median asking price was $445,000 in June, as sellers sensed their advantage, Realtor.com Chief Economist Danielle Hale said.

New listings entering the market fell 18% for the week ending July 27 from one year ago, continuing a 55-week streak. And active inventory (a combination of new and old listings) fell 8% from the same time last year.

Extreme weather is adding to the pain. Since the start of 2022, double-digit home insurance rate increases have been approved in 31 states, according to S&P Global Market Intelligence for The Wall Street Journal. Insurers are pulling out of or halting new policies in catastrophe-prone California and Florida.

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