California saw the housing market slow down in July and the rest of the country is following.
““The housing market recovery has lost a little steam which is not a surprise with the broader economy taking a bit of a step back recently. The housing market could be a little bumpy the rest of the year,” said Ryan Sweet, senior economist with Moody’s Analytics in West Chester, Pennsylvania.
Home prices, and higher mortgage rates was weighing down on affordability, which hit a five-year low in September. In addition, jobs are not going anywhere and neither is income.
“Expected rising mortgage interest rates will further lower affordability in upcoming months,” said NAR chief economist Lawrence Yun.
Pending Contracts declined in August for a third straight month. Confidence among homebuilders fell in October for the second consecutive month, while loans to buy a home have declined for the past three weeks.
Interest rates have risen have come up a full point since May on expectations that the Federal Reserve would start cutting back on its monthly bond purchases this .The Fed surprised markets last month by sticking to its monthly $85-billion bond buying program, seeking more evidence of strong economic growth.
Even though median prices are still rising, they are rising at a much slower rate than before- just as I predicted,