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Homebuying Out of Reach for Many
Households Despite Lower Debt Costs
Mortgage rate plunge fails to stoke buyer demand. Existing home sales decreased by 3.3 percent year over year in August 2024 to an eight-month low. That pullback transpired in the midst of substantial downward movement in the average 30-year fixed-rate mortgage. The gauge plummeted by 60 basis points year over year to 6.5 percent in August and slackened by an additional 40 basis points through mid-September. Even so, record-high home prices are maintaining historic homebuying barriers. The median sale price of an existing single-family house rose by 2.9 percent year over year to $411,500 in August, reaching a new all-time high. Valuations continue to be reinforced by very low for-sale inventory. The number of existing homes on the market held under 1.1 million for a fifth-straight month — a stark change from the two-decade average of more than 1.9 million houses.