The National Association of Realtors said on Wednesday its existing home sales index, based on signed contracts, fell 1.0 percent to 89.8 last month, the lowest since April 2020. Contracts have fallen in eight of the past nine months.
Economists polled by Reuters had expected existing home purchases, which become sales after a month or two, to fall 4.0 percent. On an annual basis, existing home sales plunged 19.9 percent in July.
On Tuesday, the US Commerce Department said new home sales plunged 12.6 percent to an annual rate of 511,000 units last month. The ministry revised the pace of sales for the month of June down to 585,000 units from the previous reading of 590,000 units.
Economists polled by Reuters had expected new home sales, which make up a small portion of all home sales in the world’s largest economy, to fall to a rate of 575,000 units.
The US economy has been declining since the beginning of the year, as it contracted by 0.9 percent in the second quarter of the year, after contracting by 1.6 percent in the first quarter, which threatens the United States to enter a recession, as a result of tightening monetary policies.
The US Federal Reserve raised interest rates 4 times this year, with a total of 225 basis points, in order to control the highest inflation rates in 40 years, amid expectations of more in the coming period.
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