US home sales dip due to cold weather; 30-year fixed rate mortgages at 3.32%
On Monday, the National Association of United States Realtors unveiled in a report that sales of existing homes in the United States fell to a nearly six-month low last month amid a rare winter storm. in Texas and a rare deep freeze across the country, while tight supply Analysts say rising house prices and rising mortgage rates could dampen a rebound in the US real estate market.
Nonetheless, despite gloomier US home sales data in February, as reported by the National Association of Realtor, the report released earlier today also reflected strong demand with homes lagging the market. less than 20 days after being listed..
However, although many analysts blamed a harsh winter for stifling US existing home sales in February, the rise in long-term mortgage rates cited by US mortgage buyer Freddie Mac as well as a rise expected house prices with low inventories weighed heavily on the US real estate market.
US 30-year fixed mortgage rates hovered at 3.32% on Monday, up from an average long-term home loan of 3.09% last week, data from Freddie Mac showed, while US fixed home loans at 15 years amounted to 2.52 percent.
US home sales drop to lowest since late August in February
Apart from that, according to the National Association of Realtor’s report released earlier today, sales of existing homes in the United States fell 6.6% to 6.22 million seasonally adjusted units last month, a level not seen since August 2020, while the northeast, southern and midwestern regions of the United States led the declines, although home sales rose in the western part last month.
Meanwhile, referring to rising US house prices alongside rising mortgage rates, JPMorgan New York economist Daniel Silver wrote in a client note followed by the announcement: “Harsh winter conditions weighed on sales in February.
But pending home sales already tended to drop before the bad weather; sales of existing homes are also slowing after a solid advance due to factors other than the weather ”.