Home sales absolutely plummeted last month, a sign that the Fed's interest rate hikes are dumping cold water on the real estate market
· · May 24, 2022 · NottheBee.com

It does seem like for the last several years you've needed several million dollars, a cutthroat real estate agent and a fairy godmother in order to snag your dream home.

Now there are (albeit very early) signs that that may be changing:

Sales of newly built homes dropped 16.6% in April from March, far more than expected, and were down 26.9% from April 2021, according to the U.S. Census.

The annualized rate came in at 591,000 units, seasonally adjusted. Analysts had been expecting 750,000. March's read was also revised lower.

Fewer home sales mean larger stock. Larger stock means lower prices. You do the math!

(Actually you don't need to do any math, it's pretty simple.)

You can thank the good folks at the Federal Reserve for this turnaround (on the mess they largely created):

Mortgage rates, which have been rising since January, really shot up in April. The average rate on the 30-year fixed loan began the month at 4.88% and ended it at 5.41%, according to Mortgage News Daily.

Mortgage rates be like:

Let's hope real estate prices start dropping so we can finally get that Craftsman foursquare we've all had our eyes on!


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