US Housing Market

The United States housing market is cooling quickly as record prices and rising mortgage rates put pressure on home sales and discourage potential customers.

Existing home prices in the United States continued to rise in June, with sales falling for the fifth straight month, but the median hit an all-time high.

Data suggests that rising mortgage rates have dampened interest from homebuyers but are not sufficient to weaken prices.

Economists said the slowing in housing market activity halting the surge in sales fueled by the pandemic is another sign of a slowdown and raising the risk of a decline.

According to the National Association of Realtors (NAR) data, the median price for current houses marketed in June rose to $416,000, up 13.4% year-on-year and up from $407,600in May.

According to the June report, prices rose for 124 straight months year-on-year, the record since NAR started to collect data.

The sales of the existing houses reduced 5.4% in May to a seasonally adjusted annualized rate of 5.12 million units, compared with 5.97 million units last year..

As a result of the Federal Reserve’s contraction policy, 30-year mortgage rates rose to 6 percent in June from near a record low of 3 percent late last year.

According to Zillow, the average monthly mortgage payment is $1,613, more than $600, which is higher than a year ago.