Lower prices and slower home sales. These are the two main trends observed in the US housing market in August, analysts say. At the same time, confidence in the construction sector is declining and has reached levels from two and a half years ago.
“Affordability continues to be a major challenge in the housing market. Sellers are expecting a drop in mortgage interest rates to make a purchase“, says Buddy Hughes, president of the National Association of Home Builders. Mortgage rates are showing signs of falling amid expectations that the Federal Reserve will cut key interest rates at its meeting in September.
The most common home loan in the US - a 30-year fixed-rate mortgage - fell to 6.58%. This is how it was reached the lowest level since October 2024. Since the beginning of the current year, mortgage rates have fallen by nearly half a percentage point.
„ΠGiven the slowing housing market and other related economic data, the Fed should consider lowering the federal funds rate. This would reduce the cost of financing housing construction and would certainly help interest rates on mortgages", said Robert Dietz, chief economist of the National Association of Home Builders.
Detailed statistics on average property prices in Bulgaria by city and neighborhood can be seen at imot.bg