https://www.linkedin.com/news/story/home-sales-nearing-2008-levels-5808444/Home sales nearing 2008 levels
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By Emma W. Thorne, Editor at LinkedIn News
Updated 1 hour ago
Home sales are expected to drop to their lowest rate since the 2008 recession, thanks to skyrocketing mortgage rates, reports The Wall Street Journal. The pace of sales won't increase much in 2024, says a Redfin economist, as the mortgage rates aren't expected to budge much either. Record home prices and limited inventory of existing homes compound the issue. The housing slowdown could have a wider effect on the economy, with consumers spending less on furniture and appliances; plus, fewer homebuyers means more renters, and rising rents could further stymie the Federal Reserve's push to lower inflation.
The average rate on a 30-year fixed mortgage topped 7.5% last week — an increase of about half a percentage point since August.
Purchase mortgages dropped in September to their lowest levels since 1995, per the Mortgage Bankers Association.
Nearly 40% of recent homebuyers under age 30 received family money to help with their down payments.
