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“Home sales have been stable for several months, neither rising nor falling in any meaningful way,” NAR chief economist Lawrence Yun said. “Mortgage rate changes will have a big impact over the short run, while job gains will have a steady, positive impact over the long run. The South had a lighter decline in sales from a year ago due to greater regional job growth since coming out of the pandemic lockdown.”
As of Sept. 21, Freddie Mac reported that the 30-year fixed mortgage rate had increased to 7.19%, up from 7.18% the previous week and 6.02% last year.
The surge in rates was also accompanied by high house prices, with the median price for all existing home types jumping 3.9% year over year in August to $407,100.
Read next: Fannie Mae chief economist tries to make sense of mortgage market
“Home prices continue to march higher despite lower home sales,” Yun added. “Supply needs to essentially double to moderate home price gains.”
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