Compared to average annual indicators, home sales decreased by 2.2%. The average home price fell by 9.5% and now stands at $203,100. At the same time, there is an excess of supply. Two out of five homes are sold because their owners face foreclosure.
Economists predict that home sales will further fall to 4.93 million. Previously, a different figure was mentioned – 5.02 million.
The number of mortgage agreements also dropped significantly. According to Metrinfo.Ru, this happened due to rising loan interest rates, which forced ordinary people to give up refinancing. Mortgage activity fell by 10.6%, and the number of refinancing inquiries decreased by 11.2%.
It is worth noting that, according to the U.S. Census Bureau, more than 7.5 million residents, or 15% of homeowners with mortgages, spend half or more of their total income on mortgage payments. Nearly 38% of owners, or 19 million people, spend 30% or more of their income on these payments. According to the Mortgage Bankers Association, as of the end of June this year, more than 4 million homeowners were delinquent on their mortgages, and foreclosure proceedings had been initiated on about 500,000 properties.