The 30-year fixed mortgage rate fell to 6.95% this week from 7.08% the previous week; it seems that rates have already priced in some of the effects of the Fed's higher interest rates.
Even with the Federal Reserve raising its short-term fed funds rate by another large amount, longer-term interest rates look to move only slightly.
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.
Search Economists' Outlook