Home sales increased by 5.8% month-over-month in November, U.S. Census Bureau. (iStock)
In November 2022, the number of new single-family home sales and homes on the market sat at 640,000, a 5.8% month-over-month increase from a revised 605,000 in October, according to data recently released by the U.S. Census Bureau and the U.S. Department of Housing and Urban Development (HUD).
However, the November 2022 home sales rate is 15.3% below the November 2021 estimate of 756,000.
New single-family home sales were highest in the South, which saw 369,000 in sales, according to the U.S. Census Bureau and HUD’s report. That was followed by the West (171,000), Mid-west (57,000) and Northeast (43,000).
The average sales price for new homes sold in November 2022 was $543,600, up from $533,400 in October 2022.
If the costs of owning a home are becoming a burden, you can consider refinancing your mortgage to a lower interest rate. You can visit Credible to get your personalized rate in minutes, without affecting your credit score.
More than half of Americans say they can’t afford their homes
Based on current housing prices, 55% of Americans say they wouldn't be able to afford the home they live in today, according to the Cato Institute’s 2022 Housing Affordability National Survey.
And more than a third (34%) of Americans say they are extremely concerned about the costs of housing, the survey said. In addition, 76% said that for the people in their area, now is a bad time to buy a house.
A separate study by CoreLogic, found that U.S. home prices increased 8.6% year-over-year in November 2022 compared to November 2021.
"Although home price growth has been slowing rapidly and will continue to do so in 2023, strong gains in the first half of last year suggest that total 2022 appreciation was only slightly lower than that recorded in 2021," Selma Hepp, the executive, deputy chief economist at CoreLogic, said in a statement. "However, 2023 will present its own challenges, as consumers remain wary of both the housing market and the overall economic outlook."
If you’re looking to lower your housing costs, you can consider refinancing your mortgage into a lower interest rate. You can visit Credible to speak to a mortgage refinancing expert and see if this option is right for you.
Mortgage rates remain historically high
The average rate for a 30-year fixed-rate mortgage increased to 6.15% for the week ending Jan. 19, according to Freddie Mac's Primary Mortgage Market Survey.
"While the intensity of weakness is moderating, the market continues to decline and forward leading indicators suggest housing will remain weak throughout the winter," Freddie Mac said in one of its recent reports.
This mortgage rate increase comes in the midst of economic uncertainty over inflation. To lower inflation, the Federal Reserve increased interest rates multiple times in 2022.
Most recently in December, the Fed raised interest rates by 50 basis points, bringing the federal funds rate to a targeted range of 4.25% to 4.5%, the highest level since the Great Recession. The Fed said it expects to keep increasing rates in 2023, albeit at a slower rate.
Still, any increase to the federal funds rate could have an impact on interest rates for financial products such as mortgages.
If you’re interested in taking advantage of mortgage rates before they potentially increase further, you could consider refinancing your home loan to lower your monthly payment. You can visit Credible to compare loans from different lenders, without affecting your credit score.
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