Lack Of Sellers And Low Mortgage Rates Weigh Heavily On US Housing Supply
Supplies have been tight in the US real estate sector. Low mortgage rates that attracted buyers to the market, as well as a lack of sellers, took its toll on the embattled real estate market. A housing trend report from Realtor.com revealed these facts and more.
Mansion Global delivered this report as well as data where demand has been a big problem in keeping the inventory stocked. It reportedly did nothing to keep buyer levels equal as well.
Rates for a 30-year fixed rate were at 3.60% last week, which marked the lowest level it has been measured at since the fall of 2016, data from government-owned Freddie Mac revealed.
July was an especially rough time as listings on the real estate website went flat. Growth was also stalled for the first time since January 2019, and there are fears that it could have a hand in the decline of inventory sooner than observers anticipated.
Newly listed properties in July were also down by 7% from a year ago, data also revealed.
Reports from Real Estate by Boston.com also revealed that buyers and investors were being attracted by the low rates. US long-term mortgage rates have been revealed to be at "historically low" levels, with the average on the 30-year loan falling rock bottom since it was last measured November 2016.
The low borrowing rates attracted home buyers looking for good deals. Global financial markets remained concerned about the global economy, making it more of a poor trade-off than anything else. Freddie Mac's average rate on the loan was revealed to have slipped by 0.05% down to 3.55%. A year ago, those rates were at its best, standing pat at 4.51%.
The national median in home prices were at $315,000 at the last measurement. It displayed a rise of about 5.5% from the previous median, but it is also a decline from the 8.7% annual price growth which was measured at the time. July's prices have dipped down 0.2% from June, making it the earliest that homes prices experienced a "seasonal slowdown" since 2012.
More problems in US real estate are showing. Entry-level homes-where competition didn't allow an inch of "breathing space"-have felt the shortage in supply the most. Properties which were below $200,000 had their inventories down by 9.9% as the years increased. Homes priced above $750,000, meanwhile, maintained a healthy supply of stock.