A "Sale" sign is visible in front of a home on May 30, 2019 in Miami, Florida.
Joe Riddle | Getty Images
USA. Home sales unexpectedly rose to a 17-month high in August for a second consecutive month of profits, the latest sign that lower mortgage rates are encouraging buyers off the sidelines.
The National Association of Brokers said Thursday that existing home sales rose 1.3% to a seasonally adjusted annual rate of 5.49 million units last month. Sales in July were unchanged at 5.42 million units.
Economists surveyed by Reuters predicted that existing home sales would decrease by 0.4% to 5.37 million units. Existing home sales represent about 90 percent of US home sales.
The decline in mortgage rates over most of the summer has helped buyers. The US Federal Reserve lowered interest rates for the first time in more than a decade in July and again lowered its borrowing costs on Wednesday.
The 30-year fixed mortgage rate dropped to about 3.5% from more than the seven-year peak of about 4.94% in November, according to mortgage finance agency Freddie Mac. Buyers also benefit from a low-unemployment economy, rising wages and slower house price inflation.
But overall, home sales have been on a monthly basis for most of this year, as the industry continues to struggle with a lack of supply, especially for cheaper housing.
Land and labor shortages have also reduced the building, although there are recent signs of relief. On Wednesday, data show that US housing has risen to more than 1
"Having mortgage rates low for several consecutive months is tempting buyers back into the market," says NAR Chief Economist Lawrence Yun.
Existing home sales have increased 2.6% compared to a year ago, NAR said, which is the second consecutive month of annual profits, with four in the nation increasing all year over year, with sales jumping 7.6% in the Northeast on a monthly basis and 3.1% higher in the Middle West Sales also increased 0.9% in the south, but at
The average existing house price increased 4.7% from a year ago to $ 278,200 in August, with 1.86 million homes on the market in August, down 2.6
It will take 4.1 months for August sales to clear current inventory, which is lower than 4.3 months a year ago. month is viewed as a healthy balance between supply and demand