038: Markets with Megan - Housing Report 08-23-23

Megan discusses two crucial housing indicators: existing home sales and new home sales, providing observations that shed light on the current market trends.

The episode opens with a focus on existing home sales, which took an unexpected downturn, plummeting to their lowest level since January. Megan attributes this decline to the surge in interest rates, with mortgage rates reaching a peak not witnessed since December of 2000, clocking in at 7.3 percent. This upward trajectory in rates has presented a challenge for both prospective homebuyers and those who are reluctant to part ways with their previously low mortgage rates.

Megan analyzes the positive aspect of the new home sales segment, revealing a welcomed rise in numbers, outpacing initial expectations. However, she points out that this upward trend isn't evenly distributed across the board. Notably, the Northeast and South regions experienced declines, underscoring the nuanced nature of the recovery.

There is a delicate balance between a constrained existing home sales market and the comparatively more optimistic outlook for new home sales. The landscape for potential homebuyers remains complex due to rising prices and affordability.

With the second half of the year underway, the housing sector continues to grapple with the repercussions of heightened interest rates and limited inventory. Megan remains vigilant in monitoring how these variables sway consumer sentiment and, consequently, the broader economic landscape.