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Home Sales Surge in July, but Housing Market Faces Headwinds
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Business Journal Daily | The Youngstown Publishing Company
July’s sales figure reflects contracts signed weeks earlier, when mortgage rates were hovering in the 6.5% range.
A fresh oil price shock in July sent mortgage rates higher, likely prompting many home shoppers to pause their search.
A monthly mortgage payment on the typical U.S. home in July, assuming a 20% down payment, was 0.9% lower than the year prior.
Unless they reverse course, mortgage rates will be higher than last year in August, likely enough to push the typical mortgage payment above year-ago levels.
The monthly mortgage payment on a typical U.S. home is $1,888, assuming a 20% down payment and excluding taxes and insurance.