US existing home sales hit three-year low in Dec
Thursday, 24 January 2019
WASHINGTON, Jan 23 (AFP): Sales of existing US homes unexpectedly plunged to a three-year low in December, partly reflecting a bump in mortgage rates, according to an industry survey.
Amid rising prices and tight supply in addition to cold weather and California wildfires, analysts had been expecting slower sales in the final month of 2018.
But December's sudden drop could exacerbate fears of a weakening housing market, which economists say is often the first sector to head south in an economic downturn.
With mortgage rates cooling in recent weeks, sales could recover in early 2019, according to the National Association of Realtors, which produces the monthly report.
Sales of town homes, condos, co-ops and single-family houses fell 6.4 per cent from November to an annual rate of 4.99 million, seasonally adjusted, the lowest level since November of 2015.
The result fell far below the 5.25 million that economists had been expecting and put the month a dizzying 10.3 per cent below December of 2017.
"The housing market is obviously very sensitive to mortgage rates," NAR Chief Economist Lawrence Yun said in a statement.