US Mortgages Highest Since 2008, Florida Home Sales Fall – InsuranceNewsNet

Tampa, Florida. (WFLA) – As mortgage rates continue to rise, the housing market in United State adapts. The latest gauge of the 30-year mortgage rate hit a flat rate of 6.29% on Thursday. For the third time in 2022, Federal Reserve president Jerome Powell Announced a rate hike of 0.75 from US Central Bank, Wednesday. Higher Mortgage Loans Come To we Home prices have also “fallen”, according to Florida Realtors.

The real estate organization stated that as sales of single-family homes decreased and mortgage rates increased, the number of homes in them was sold Florida Drops. Florida Realtors’ latest data, from August, showed a 15.8% decrease in home sales, statewide, compared to the previous year.

The largest relative decline in sales was in Naples The metropolitan area, where home sales fell 32.7%, even with the highest prices in the area. However, the Naples The metro had one of the lowest number of homes sold in the entire state, with only four other market areas having lower sales.

Markets with the largest portions of single-family homes sold in the state, such as TampaAnd the MiamiAnd the Orlandoall of their sales numbers have shrunk, but not to the same degree, according to realtor data.

While home prices fell nationwide, Florida Prices increased by 15% compared to the previous year. Selling a normal house in Florida Bought for $407,000 According to the data. in Tampaprices were slightly lower than the state average, in $403,995. However, it is 18.8% more than August 2021.

nearby, Sarasota Home prices in the region increased by 22%, in $500,000 Flat for medium selling point. Miami Prices were up to 560 thousand dollars, an annual increase of 13.1%. However, their annual sales numbers fell 22.6% instead, as did the entire state, except for Panama City And the Gainesville The markets saw a drop in sales.

year to date, Tampa stay the Florida The area with the largest number of sales. From January 2022 to me August 202232,615 of the state’s sales were 210,449 in Tampa Metro area, accounting for 15.5% of all sales in the state this year. The Miami The area had the next top tier, at 30,662 or 14.5% of all single-family homes sold.

The decline in home sales followed the weekly increases in mortgage rates reported Freddy Mac, a federally backed mortgage company. The last increase was more than a quarter of a point.

“The housing market continues to face headwinds as mortgage rates are up again this week, after 10 years treasury Yield jump to the highest level since 2011,” Sam KhaterAnd the Freddy Mac said the chief economist. “Affected by the higher rates, home prices are dropping, and home sales have fallen. However, the number of homes for sale is still well below normal levels.”

data from Federal Reserve Stock fluctuations showed affected the family net worth across the country we

“The net worth of households and nonprofits has fallen to $143.8 trillion during the second quarter of 2022″ Federal Reserve mentioned. The value of shares of companies owned directly and indirectly has decreased 7.7 trillion dollars The property value has increased 1.4 trillion dollars. ”

The level of available home inventory remains an obstacle to market stability, but buyers’ balance sheets have also fallen amid persistent inflation. Lower net worth means less leverage for assets to buy homes, or provide collateral for a loan. Real estate firm Redfin made a similar claim, saying the stock slide is also hurting buyers’ ability to buy expensive homes.

“The general slowdown and popularity of the move is due to rising home prices and mortgage rates that have doubled since last year,” Taylor Mar, said Redfin’s deputy chief economist. “Continuous inflation and falling stocks are also shrinking buyers’ budgets, making relatively affordable areas more attractive.”

Inflation and high mortgage rates are making it more difficult for home shoppers, according to St. Louis Federal Reserve. The branch’s mortgage data shows rates are at their highest since the 2008 financial crisis, when mortgage interest was 6.32%. The latest Fed rate gauge is just 0.02 points below that level.

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