![\"Mortgage](\"https:\/\/staging2.mbsquoteline.com\/home\/wp-content\/uploads\/2022\/09\/mortgage-rates-achieve-highest-levels-over-10-years-mortgagetime-mbsquoteline-chart-1024x512.png\")
<\/a><\/figure><\/div>\n\n\nExisting Home Sales Decline as Mortgage Rates Achieve Highest Levels in Over a Decade<\/h2>\n\n\n\n
As mortgage rates achieved their highest levels in over a decade, sales of existing homes fell yet again. For the seventh straight month, existing home sales decreased in August 2022. Now, existing home sales dropped to the lowest level since 2015 (excluding a brief dip near the start of the pandemic). Statistically, they declined 20% lower than last year at this time.<\/p>\n\n\n\n
On the inventory front, levels remained roughly unchanged from a year ago. Currently, existing home inventory sits at just a 3.2-month supply nationally. In other news, the median existing-home price of $389,500 rose 8% higher than a year ago. Notably, this accounts for the smallest annual rate of increase since early 2020. In addition, it decreased from a record high of $413,800 in June 2022.<\/p>\n\n\n\n
Housing Starts and Home Builder Sentiment Provide Discouraging Data<\/h2>\n\n\n\n
Additionally, a separate survey of home builder sentiment from the NAHB declined for the ninth straight month. As of now, home builder sentiment plunged to its lowest reading since May 2014 (again excluding a brief period early in the pandemic). 24% of builders reported price reductions, up from 19% the prior month. In tandem with mortgage rates achieving a new milestone, new construction faces higher costs. More so, shortages for land, materials, and skilled labor present major issues to a faster pace of construction.<\/p>\n\n\n\n
Although greater home inventory helps to resolve the country\u2019s real estate challenges, the latest housing starts data proved to be quite discouraging. From July to August 2022, overall housing starts showed a solid increase. Despite the growth, analysts attributed the rise almost entirely due to strength in multi-family units. On the other hand, housing starts for single-family units remained near the lowest levels since early 2020.<\/p>\n\n\n\n
Looking Ahead After Mortgage Rates Achieve Highest Levels in Over 10 Years<\/h2>\n\n\n\n
After mortgage rates achieved their highest levels in over a decade, investors hope for more specific guidance on the pace of future rate hikes. In addition, investors still seek insights into the Federal Reserve\u2019s bond portfolio reduction strategy. Next week, New Home Sales and Consumer Confidence release on Tuesday. The core PCE price index, the Fed\u2019s favored inflation indicator, publishes on Friday.<\/p>\n\n\n\n
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As the Federal Reserve raised the federal funds rate by 75 basis points, the market saw mortgage rates achieve the highest levels in over 10 years. Never miss an update with MBSQuoteline. To receive by-the-minute updates on mortgage-backed securities,\u00a0try our platform free for 14 days.<\/strong><\/a><\/p>\n\n\n Stay connected with MBSQuoteline on social media by following us on Facebook<\/a>, Twitter<\/a>, and LinkedIn<\/a>.<\/p>\n\n\n\n All material Copyright \u00a9 Ress No. 1, LTD (DBA MBSQuoteline) and may not be reproduced without permission. To learn more about the MortgageTime\u2122 newsletter, please contact MBSQuoteline at 800.627.1077<\/a> or info@mbsquoteline.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":" As central banks around the world maintain an aggressive policy stance, mortgage rates achieved their highest levels in over 10 years.<\/p>\n","protected":false},"author":9,"featured_media":4545,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[426],"tags":[518,457,352,405,538,31,501,443,368,56,33,494,512,441,502,418,537,517],"class_list":["post-4542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mortgagetime","tag-balance-sheet-reduction","tag-consumer-confidence","tag-core-pce","tag-existing-home-sales","tag-federal-funds-rate","tag-federal-reserve","tag-home-builder-confidence","tag-housing-inventory","tag-housing-starts","tag-inflation","tag-mbs","tag-median-existing-home-price","tag-median-new-home-price","tag-mortgage-backed-securities-2","tag-nahb-housing-index","tag-new-home-sales","tag-personal-consumption-expenditures","tag-rate-hikes"],"_links":{"self":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4542","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/comments?post=4542"}],"version-history":[{"count":3,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4542\/revisions"}],"predecessor-version":[{"id":4548,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/posts\/4542\/revisions\/4548"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media\/4545"}],"wp:attachment":[{"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/media?parent=4542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/categories?post=4542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/staging2.mbsquoteline.com\/home\/wp-json\/wp\/v2\/tags?post=4542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"Mortgage](\"https:\/\/staging2.mbsquoteline.com\/home\/wp-content\/uploads\/2022\/09\/mortgage-rates-achieve-highest-levels-over-10-years-mortgagetime-mbsquoteline-data-1024x512.png\")
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