Sky-high mortgage rates leave homes unaffordable for more, new home sales tumbling
Sales of new U.S. homes hit a 5-month low last month as sky-high mortgage rates continue to strain prospective homebuyers’ ability to afford a dwelling LOS ANGELES -- Sales of new U.S. homes hit a 5-month low last month as sky-high mortgage rates continue to strain prospective homebuyers' ability to afford a dwelling. The pace slowed 8.7% in August from the previous month to a seasonally adjusted annual rate of 675,000 properties, the Department of Commerce reported this week. Economists polled by FactSet had expected the annual pace to reach 700,000 homes . “Homebuilders are still benefiting from very low inventory of existing homes for sale, which has driven more buyers to consider new construction, but with mortgage rates elevated and home prices high, afford ability is a growing concern for homebuyers," said Lisa Sturtevant, chief economist at Bright MLS. Mortgage rates are near a 23-year high, forcing many would-be buyers to the sidelines. The average rate on a 30-year...