September's pending home sales pace weakened 10.2% last month and fell 31.0% from a year ago.
The 30-year fixed mortgage rate rose to 7.08% from 6.94% the previous week, increasing the monthly mortgage payment by $1,000.
Data shows that there are more multifamily than single-family units under construction.
September 2022's existing-home sales reached a 4.71 million seasonally adjusted annual rate, declining 23.8% from September 2021.
Mortgage rates rose to 6.94% this week, near the 7% benchmark that could be considered the new normal for mortgage rates.
Housing starts weakened in September 2022, driven by insufficient single-family home construction and multifamily apartment building.
Compared to July 2022, the monthly mortgage payment decreased by 4.4% while the median family income increased by 0.3%, making home buying more affordable in August.
Amid unyielding inflation and rising borrowing costs, consumers are starting to cut spending, mostly on big-ticket items.
The 30-year fixed mortgage rate rose to 6.92% from 6.66% the previous week. While inflation remains elevated, mortgage rates will continue to move up, making homeownership even further out of reach for many.
Inflation refuses to budge. In September, consumer prices rose by 8.2%. Rents rose by 7.2%, the highest pace in 40 years.
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