{"id":14786,"date":"2019-01-24T13:36:18","date_gmt":"2019-01-24T13:36:18","guid":{"rendered":"http:\/\/www.anthonydidonato.net\/wordpress\/?p=14786"},"modified":"2019-01-24T13:36:19","modified_gmt":"2019-01-24T13:36:19","slug":"home-sales-plunge-6-4-mortgage-rates-blamed","status":"publish","type":"post","link":"http:\/\/www.anthonydidonato.net\/wordpress\/home-sales-plunge-6-4-mortgage-rates-blamed\/","title":{"rendered":"Home Sales Plunge 6.4%, Mortgage Rates Blamed"},"content":{"rendered":"

Home Sales Plunge 6.4%, Mortgage Rates Blamed<\/h1>\n
\"Home<\/a>

Home Sales Plunge 6.4%, Mortgage Rates Blamed<\/p><\/div>\n

Following two consecutive months of increases, existing-home sales dialed back at the end of 2018 and economists pointed to higher mortgage rates for most of last year as one of the main culprits. However, they\u2019re optimistic a turnaround will be in sight for home sales in the spring season, particularly given that mortgage rates have started to decrease in recent weeks.<\/p>\n

Total existing-home sales\u2014which are completed transactions that include single-family homes, townhomes, condos, and co-ops\u2014dropped 6.4 percent in December compared to November. Sales are now down 10.3 percent from a year ago, according to the National Association of REALTORS\u00ae\u2019 existing-home sales report, released Tuesday.<\/p>\n

Higher mortgage rates during much of 2018 are partially to blame for the decrease in home sales at the end of the year, says Lawrence Yun, NAR\u2019s chief economist.<\/p>\n

\u201cThe housing market is obviously very sensitive to mortgage rates,\u201d Yun says. \u201cSofter sales in December reflected consumer search processes and contract signings activity in previous months when mortgage rates were higher than today. Now, with mortgage rates lower, some revival in home sales is expected going into spring.\u201d<\/p>\n

In December, the 30-year fixed-rate mortgage averaged 4.64 percent. For comparison, in all of 2017, 30-year rates averaged 3.99 percent. Mortgage rates have been inching down in recent weeks. The 30-year fixed-rate mortgage averaged 4.45 percent last week<\/a>, reports Freddie Mac.<\/p>\n

With mortgage rates improving, home sales still face another possible threat: the partial government shutdown. However, the shutdown of the federal government did not have a significant effect on December closings, says John Smaby, NAR president. \u201cBut the uncertainty of a shutdown has the potential to harm the market,\u201d Smaby says. \u201cOnce the government is fully reopened, I am hopeful that housing transactions will increase.\u201d<\/p>\n

Here\u2019s a closer look at NAR\u2019s December existing-home sales report:<\/p>\n