Unsigned contracts for buying existing houses, which are referred to as outstanding sales, were weaker than June in July and have been terminated at least 2017 at the highest price.
The monthly outstanding house sales index of the National Association of Realors fell 0.4% in July in July, but was still 0.7% higher from July last year.
The mortgage interests in July were slightly higher, which could make up part of the decline. The average interest rate for the popular 30-year-old mortgage started in July with 6.67% and then rose to 6.85% in the middle of the month and, according to Mortgage News, ended in July 6.75%. The rate fell stronger in August and is now 6.51%.
“Even with modest improvements to the mortgage interest, the affordability of living space and the inventory, buyers are still hesitation,” said Lawrence Yun, chief economist of the NAR. “Buying a house is often the most expensive purchase that people will make in their lives. This means that the sub -contract is not quick.”
The turnover was not only lower, but buyers cancel these contracts at a quick pace. Redfin, a real estate agent, found that 15% of the contracts were canceled in July. This is the highest price since its pursuit of the metric in 2017. This is based on a redfin analysis of the outstanding sales data from MLS, a national database with listings.
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The report was found in Texas and Florida most widespread cancellations, whereby in particular high prices in San Antonio (22.7%), Fort Lauderdale (21.3%) and Tampa (19.5%) were listed.
Redfin agents cited “cold feet” as the main reason why buyers withdraw according to the report. This pursues the general uncertainty that consumers feel about the current state of the economy.
A NAR survey among brokers showed only 16%that they expect an increase in buyer traffic in the next 3 months.
The regional turnover in July fell in the northeast and in the middle west in the south and rose flat in the west.
“Overall, it was a” cruel summer “: the buyers remain squeezed by affordability problems, while the sellers slowly adapt the expectations and remain neutral,” said Jake Krimmel, Senior Economist Jake Krimmel. “Mortgical interest rates also offered little relief in July.”