Sales of previously owned U.S. homes posted their largest annual decline since 2014 in October, as the housing market continues to sputter due to higher mortgage rates that are reducing home affordability.
The latest data offered a mixed picture of a market that isn’t in free fall but also is far from robust. Existing-home sales edged up 1.4% in October from the previous month to a seasonally adjusted annual rate of 5.22 million, the National Association of Realtors (NAR) reported on November 21.
“There is some feeling that the market could actually go even lower than what it is now in terms of sales,” said Lawrence Yun, Chief Economist for NAR.
The good news for buyers is that conditions are becoming friendlier to them, as mortgage rate and home-price increases slow and inventory of homes for sale is growing compared with last year.
LAURA KUSISTO and SARAH CHANEY, WALL STREET JOURNAL, NOVEMBER 21, 2018