BIDEN ECONOMY: US Existing Home Sales Drop for 5th Straight Month But Inflation Keeps the Price of Homes at Record Highs
The sales of existing homes decreased for the 5th straight month. However, the price of homes has remained at all-time highs due to inflation.
Bloomberg reported on the housing markets:
Sales of previously owned US homes fell in June to a two-year low as a surge in borrowing costs continues to erode affordability.
Contract closings fell 5.4% from May to an annualized 5.12 million, figures from the National Association of Realtors showed Wednesday. The median estimate called for 5.35 million in a Bloomberg survey of economists.
The latest decline in sales marks the fifth straight — the worst streak since 2013 — and it’s likely to deepen further. The Federal Reserve is aggressively increasing interest rates to combat inflation, a pivot that’s chilled the broader housing market.
Steve Cortez was on the War Room where he discussed the economy. He shared that home sales were down but the prices of homes remain high due to inflation.