Economic Update: U.S. home sales cooling off
COLORADO SPRINGS — Home sales have dropped nationally for the fifth consecutive month. Economic expert Tatiana Bailey explains the reasons behind the trend, and what it means for the economy moving forward.
Bailey says the most obvious reason is because interest rates are significantly higher than this time last year. Interest rates currently sit at 6% for a 30-year mortgage, versus 3% in 2021. For a $600,000 home, that translates to about $1,000 more per month, says Bailey.
Bailey says another reason for the cool down is home prices – they are still fairly high. Sellers are curbing their expectations for the sale price of their homes, or even reducing them. However, those price adjustments take time.
Bailey says in addition, a lot of people who have no choice but to move to a new home, either because of an expanding family or relocation, are now hurrying up to buy a home. That equates to essential…