Comments on: Existing Home Sales Rebound Amid Record-Low Inventory and Higher Prices https://eyeonhousing.org/2022/02/existing-home-sales-rebound-amid-record-low-inventory-and-higher-prices/ National Association of Home Builders Discusses Economics and Housing Policy Thu, 30 May 2024 18:13:15 +0000 hourly 1 By: John White https://eyeonhousing.org/2022/02/existing-home-sales-rebound-amid-record-low-inventory-and-higher-prices/#comment-1901554 Fri, 18 Feb 2022 18:02:04 +0000 https://eyeonhousing.org/?p=31477#comment-1901554 These are sales that closed so most of the actual sales occurred 60 to 90 ago. Mortgage rates have risen over 60 basis points since January 1st and they are about a point above their recent lows. That is a 33% increase in the interest portion of a monthly payment and that will dampen demand considerably. Once demand drops, prices will soon follow.

Higher interest rates will slow sales but most builders face a much greater risk posed by the potential loss of sales from backlogs that have grown considerably by good sales and construction delays.

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