Concerns about an economic recession on the horizon appears to be dragging the housing market down. According to data from CoreLogic, August was the worst month for home sales in four years. This marks the twelfth month out of the last 13 in which sales were down on a year-over-year basis, the report stated.
California home sales were down 0.2 percent from the previous month and 2.8 percent lower than August 2018. Along with sales being on the slide, median home prices also declined – down 0.2 percent from July.
Historically, August sees an end-of-the-summer bump in home sales. Experts suggest that with the current economic uncertainty, if mortgage rates weren’t so favorable to buyers the decline might have been worse.
Meanwhile, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.