The National Association of Realtors reported that existing home sales dropped 0.4 percent, the seventh straight month of decline, bringing the market to the lowest level since early in the pandemic.
The Federal Reserve interest rate hikes have driven up mortgage rates, which spiked above 6 percent for the first time since the 2008-2009 recession.
“The housing sector is the most sensitive to and experiences the most immediate impacts from the Federal Reserve’s interest rate policy changes,” said Lawrence Yun, NAR chief economist. “The softness in home sales reflects this year’s escalating mortgage rates. Nonetheless, homeowners are doing well with near nonexistent distressed property sales and home prices still higher than a year ago.”