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U.S. existing home sales near 14-year high in August
Sep 22, 2020
FILE PHOTO: A house-for-sale sign is seen inside the Washington DC Beltway in Annandale, Virginia January 24, 2016. REUTERS/Hyungwon Kang/Files
WASHINGTON (Reuters) - U.S. home sales surged to their highest level in nearly 14 years in August as the housing market continued to outperform the broad economy, though record home prices could be an obstacle for first-time buyers.
The National Association of Realtors said on Tuesday that existing home sales increased 2.4% to a seasonally adjusted annual rate of 6 million units last month, the highest level since December 2006. Data for July was unrevised at 5.86 million units. Last month’s increase in homes sales was in line with economists’ expectations.
Sales last month concentrated on the upper price end of the market. Existing home sales, which account for the bulk of U.S. home sales, jumped 10.5% on a year-on-year basis in August. Sales increased in all four regions.
The housing market has remained resilient despite nearly 30 million people being on unemployment benefits. Unemployment has disproportionately affected low-wage workers in the services sector, who are typically young and renters.
Housing is being fueled by record low interest rates and a pandemic-fueled migration to suburbs and low density areas. The 30-year fixed mortgage rate is around an average of 2.87%, according to data from mortgage finance agency Freddie Mac.
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