• Wed. May 29th, 2024

Building More Homes to Unlock the Stagnant Home Market: The Impact of Lower Mortgage Rates on New and Existing Home Sales

BySamantha Nguyen

Mar 25, 2024
February Sees a Decrease in New Home Sales

In February, newly built home sales declined slightly, while previously owned homes saw a significant increase. Despite the decrease from January, the annual rate of new home sales in February was still 5.9% higher than the previous year. However, existing home sales saw a significant increase of 9.5%, attributed to lower interest rates easing market constraints.

High mortgage rates have caused homeowners to be hesitant about selling and buying new homes, which has led to fewer homes for sale. Many economists suggest that building more new homes could help unlock the stagnant market. While experts predict that new home sales will increase over the rest of the year due to lower mortgage rates, increased supply, and a shortage of existing homes for sale, it is unlikely that they will reach economists’ expectations of 675,000 annually.

Looking ahead, experts predict that new home sales will increase over the rest of the year due to lower mortgage rates, increased supply, and a shortage of existing homes for sale. According to Nancy Vanden Houten of Oxford Economics, these factors will likely drive sales of new homes higher in 2024. However, high mortgage rates have caused homeowners to be hesitant about selling and buying new homes, which has led to fewer homes for sale. Many economists suggest that building more new homes could help unlock the stagnant market.

By Samantha Nguyen

As a content writer at newsqwe.com, I am passionate about crafting engaging and informative articles that captivate our audience. With a background in journalism and a keen eye for detail, I strive to deliver content that is not only well-researched but also adds value to our readers' lives. From breaking news stories to in-depth features, I take pride in my ability to tell compelling stories that resonate with our diverse audience. When I'm not typing away at my keyboard, you can find me exploring new cafes, practicing yoga, or getting lost in a good book. I am thrilled to be a part of the newsqwe.com team and look forward to sharing my love for writing with all of our readers.

Leave a Reply