Homes sales fell 8.4% in January despite lower mortgage rates

"The U.S. housing market has been in a sales slump dating back to 2022, when mortgage rates began to climb from pandemic-era lows. The combination of higher mortgage rates, years of skyrocketing home prices and a chronic shortage of homes nationally following more than a decade of below-average home construction have left many aspiring homeowners priced out of the market."

"Existing home sales sank 8.4% last month from December to a seasonally adjusted annual rate of 3.91 million units, the National Association of Realtors said Thursday. That's the biggest monthly decline in nearly four years and the slowest annualized sales pace in more than two years. Sales fell 4.4% compared with January last year. The latest sales figure fell short of the 4.105 million pace economists were expecting, according to FactSet."

Existing U.S. home sales fell 8.4% in January to a seasonally adjusted annual rate of 3.91 million units, marking the largest monthly decline in nearly four years and the slowest pace in over two years. Sales declined 4.4% from January a year earlier and missed economists' expectations. Sales slowed across the Northeast, Midwest, South and West, with the biggest monthly and annual drop in the West, and January closings often reflect contracts signed late last year because of the usual lag. Despite weaker sales, the national median price rose 0.9% year-over-year to $396,800, the 31st consecutive month of annual gains, while higher mortgage rates, rapid price growth, and a chronic inventory shortage continue to limit buyer affordability.

Read at Fast Company