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Existing home sales drop in August to lowest level since 2020
Economy ‘doesn’t work’ if inflation is ‘this high’: WSJ economic correspondent
Wall Street Journal Chief Economic Correspondent Nick Timiraos discussed strategy surrounding the Fed’s speculated decision to combat inflation by potentially hiking interest rates by another 75 basis points ahead of their announcement Wednesday.
U.S. existing home sales slowed for the seventh straight month in August as rising mortgage rates, surging inflation and steep home prices continued to push prospective buyers out of the market.
Sales of previously owned homes tumbled 0.4% in August from the previous month to an annual rate of 4.80 million units, according to new data released Wednesday by the National Association of Realtors. That is better than what economists were expecting, according to Refinitiv. On an annual basis, home sales plunged 19.9% in August
Sales have fallen to the slowest pace since June 2020, when the economy was still deep in the throes of the COVID-19 pandemic. Excluding that, this is the worst period for home sales since 2015. The last time that home sales plunged for seven consecutive months was between August 2013 and January 2014.
"The softness in home sales reflects this year's escalating mortgage rates," NAR chief economist Lawrence Yun said in a statement. "Nonetheless, homeowners are doing well with near nonexistent distressed property sales and home prices still higher than a year ago."