Wall Street Journal writers Will Parker and Harriet Torry reported this week that, “Sales of previously owned U.S. homes picked up in July, a sign that lower mortgage rates may be finally starting to drive sales after a weak spring selling season.
“July marked the first year-over-year uptick in 17 months and economists have been somewhat puzzled why the lowest mortgage rates in nearly 50 years, strong employment and wages edging higher have failed to spark more home buying. The July activity was one of the few signs that these forces may be starting to translate into more sales.
“Existing-home sales rose 2.5% in July from the previous month to a seasonally adjusted annual rate of 5.42 million, the National Association of Realtors said Wednesday. Economists surveyed by The Wall Street Journal had expected sales to rise 2.3% last month.”
The Journal writers noted that, “A shortage of homes means home prices remain high. The median sales price for an existing home in July was $280,800, up 4.3% from a year earlier. In some large markets, however, the median price of lower-end homes has appreciated by more than 100% since 2012, according to NAR, further limiting the pool of eligible buyers.”
“Buyers have also worried about the effects of the U.S. trade dispute with China, and concerns of slower economic growth has been fueled in recent weeks by some indicators, such a bond yields, that now suggest the possibility of a recession,” the Journal article said.
