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Friday, April 21, 2023 • B3
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U.S. HOME SALES FALL IN MARCH Alex Veiga ASSOCIATED PRESS
LOS ANGELES — The spring homebuying season in the U.S. is off to a tepid start, as buyers contend with sharply higher mortgage rates and near historiclow inventory of properties on the market. Existing U.S. home sales fell 2.4 percent last month from February to a seasonally adjusted annual rate of 4.44 million, the National Association of Realtors said Thursday. That’s below the 4.5 million home sales economists were expecting, according to FactSet. Sales slumped 22 percent compared with March last year. The annual drop was steepest in markets across the Western part of the country, where sales sank more than 30 percent from a year ago. The national median home price slipped 0.9 percent from March last year to $375,700, the NAR said. That’s the biggest annual median home price drop since January 2012. While the drop in prices is good news for buyers after years of soaring home values, a stubbornly low inventory of properties for sale continues to drive bidding wars in many markets, especially for the most affordable homes. Some 28 percent of homes purchased last month sold for more than their list price, said Lawrence Yun, the NAR’s chief economist. “Home sales are trying to recover and are highly sensitive
JEFF CHIU / ASSOCIATED PRESS
Residential properties are shown on a hill in San Francisco on Tuesday, April 18, 2023. to changes in mortgage rates,” Yun said. “Yet, at the same time, multiple offers on starter homes are quite common, implying more supply is needed to fully satisfy demand.” The U.S. housing market has been slow to regain its footing this year after posting its deepest slump in nearly a decade last year. Homebuyers continue to grapple with sharply higher mortgage rates, which can add hundreds of a dollars a month in costs, on top
of home prices that have only come down slightly recently after soaring in recent years. While more homes traditionally hit the market during the spring homebuying season, the number of properties for sale remains near historic lows at under 1 million, limiting options for would-be buyers. Some 980,000 homes were on the market by the end of March, the NAR said. That’s an increase of 1 percent from February and
5.4 percent from March last year. Even so, that amounts to a 2.6-month supply at the current sales pace. In a more balanced market between buyers and sellers, there is a 5- to 6-month supply. The inventory of homes for sale has yet to return to pre-pandemic levels. Last month’s inventory was down 41 percent from March 2019, when there were 1.7 million homes on the market. The uptick in homes for sale in
March reflects properties sitting on the market longer. The number of homes listed for sale for the first time in March was down 17 percent from a year earlier, Yun said. Many homeowners who locked in a mortgage rate in 2020 and 2021, when they averaged below 3 percent, are reluctant to sell now that rates have doubled, which is limiting the inventory of homes for sale. The average rate on a 30-year mortgage reached a two-decade high of 7.08 percent in the fall following a series of interest rate hikes by the Federal Reserve. Higher rates can add hundreds of a dollars a month in costs for homebuyers, on top of already high home prices. Rates eased in February then ticked higher in early March, reaching an average of 6.73 percent by the second week of the month. The average rate on a fixed-rate 30-year home loan rose to 6.39 percent this week, snapping a five-week slide, according to mortgage buyer Freddie Mac. The rate averaged 5.11 percent a year ago. The combination of high borrowing costs and intense competition for the most affordable homes on the market is keeping many first-time buyers on the sidelines. They accounted for 28 percent of home sales in March, up from 27 percent in February but down from 30 percent in March last year, the NAR said. “First-time buyers are still struggling,” Yun said.
Youth Month a Month at Youth Month Mortgage rates rise: 30-year climbs to 6.39 percent
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WASHINGTON, D.C. — U.S. mortgage rates rose this week for the first time in more than a Visit us in a branch or online at month, at least a temporary setback for would-be home buyers and a housing market already reelFederally insured by NCUA. ing from more than a year of interest-rate hikes by the Federal Reserve. Mortgage buyer Freddie Mac said Thursday that that average نzƺɯ ȅƺȅƫƺȸɀ ǔȒȸ ɵȒɖɎǝ ƏƬƬȒɖȇɎ ȒȇǼɵِ kƏɖƏٻǣ I!È ɯǣǼǼ ȅƏǸƺ ɵȒɖȸ ˡȸɀɎ ƳƺȵȒɀǣɎ Ȓǔ ِדאڟɯǝƺȇ ɵȒɖ Ȓ fixed-rate 30-year mortgage Visit edged us in a branch or online at kauaicreditunion.org to learn how to get started up to 6.39 percent from 6.27 perȸƺȷɖǣȸƺƳ ɎȒ ȸƺƬƺǣɮƺ Ɏǝƺ ƫȒȇɖɀِ (ƺȵȒɀǣɎ ɯǣǼǼ ƫƺ ȅƏƳƺ ƏɎ Ɏǣȅƺ Ȓǔ ƏƬƬȒɖȇɎ ȒȵƺȇǣȇǕِ xɖɀɎ ȅƏǣȇɎƏǣȇ Ə ȅǣȇ cent the week before. A year ago, Visit us in a branch Federally insured by NCUA. ƺƏȸȇ ۏِȇȇɖƏǼ ¨ƺȸƬƺȇɎƏǕƺ çǣƺǼƳ Ȓȇ Ə ȵƺȸɀȒȇƏǼ ɀƏɮǣȇǕɀ ƏƬƬȒɖȇɎِ ۏِǣɀ ƏƬƬɖȸƏɎƺ Əɀ Ȓǔ Ɏǝƺ ǼƏɀɎ Ƴǣɮ the average rate was 5.11 percent. The average rate on 15-year Federally insured b ƏƬƬȒɖȇɎِ çȒɖɎǝ ƏƬƬȒɖȇɎ ȸƺȷɖǣȸƺɀ Əȇ ƏƳɖǼɎ זȒȸ ȒǼƳƺȸ Əɀ Ə ǴȒǣȇɎ ƏƬƬȒɖȇɎِ fixed-rate mortgages, popular with those refinancing their homes, also rose — to 5.76 percent from 5.54 percent a week earlier. ɖƏٻǣ I!È ɯǣǼǼ ȅƏǸƺ ɵȒɖȸ ˡȸɀɎ ƳƺȵȒɀǣɎ Ȓǔ ِדאڟɯǝƺȇ ɵȒɖ Ȓȵƺȇ Əȇ ƏƬƬȒɖȇɎ ƫƺɎɯƺƺȇ ِבאٖבٖגٮבאٖٖגzȒ ȅǣȇǣȅɖȅ The Fed, responding to a surge نzƺɯ ȅƺȅƫƺȸɀ ǔȒȸ ɵȒɖɎǝ ƏƬƬȒɖȇɎ ȒȇǼɵِ kƏɖƏٻǣ I!È ɯǣǼǼ ȅƏǸƺ ɵȒɖȸ ˡȸɀɎ ƳƺȵȒɀǣɎ Ȓǔ ِדאڟ ƫƺ ȅƏƳƺ ƏɎ Ɏǣȅƺ Ȓǔ ƏƬƬȒɖȇɎ ȒȵƺȇǣȇǕِ xɖɀɎ ȅƏǣȇɎƏǣȇ Ə ȅǣȇǣȅɖȅ ƫƏǼƏȇƬƺ Ȓǔ ِדאڟɎȒ Ǹƺƺȵ Ɏǝƺ ƏƬƬȒɖȇɎ Ȓȵƺȇ ƏȇƳ in inflation that last year hit a four-decade high, has raised its ȸƺȷɖǣȸƺƳ ɎȒ ȸƺƬƺǣɮƺ Ɏǝƺ ƫȒȇɖɀِ (ƺȵȒɀǣɎ ɯǣǼǼ ƫƺ ȅƏƳƺ ƏɎ Ɏǣȅƺ Ȓǔ ƏƬƬȒɖȇɎ ȒȵƺȇǣȇǕِ xɖɀɎ ȅ ȸɀȒȇƏǼ ɀƏɮǣȇǕɀ ƏƬƬȒɖȇɎِ ۏِǣɀ ƏƬƬɖȸƏɎƺ Əɀ Ȓǔ Ɏǝƺ ǼƏɀɎ ƳǣɮǣƳƺȇƳ ƳƺƬǼƏȸƏɎǣȒȇ ƳƏɎƺِ «ƏɎƺ ȅƏɵ ƬǝƏȇǕƺ ƏǔɎƺȸ ȒȵƺȇǣȇǕ benchmark interest rate nine ƺƏȸȇ ۏِȇȇɖƏǼ ¨ƺȸƬƺȇɎƏǕƺ çǣƺǼƳ Ȓȇ Ə ȵƺȸɀȒȇƏǼ ɀƏɮǣȇǕɀ ƏƬƬȒɖȇɎِ ۏِǣɀ ƏƬƬɖȸƏɎƺ Əɀ זȒȸ ȒǼƳƺȸ Əɀ Ə ǴȒǣȇɎ ƏƬƬȒɖȇɎِ times in just over a year. Mortgage rates surged — to a two-decade ƏƬƬȒɖȇɎِ çȒɖɎǝ ƏƬƬȒɖȇɎ ȸƺȷɖǣȸƺɀ Əȇ ƏƳɖǼɎ זȒȸ ȒǼƳƺȸ Əɀ Ə ǴȒǣȇɎ ƏƬƬȒɖȇɎِ high of 7.08 percent last fall. But rates had fallen five straight weeks Visit before the upturn this week. Visit us us in in a a branch branch or or online online at at kauaicreditunion.org kauaicreditunion.org to to learn learn how how to to get get started started Higher borrowing costs have Visit us in a branchby or online at kauaicreditunion.org to learn how to get started taken a toll on the housing market. Federally Federally insured insured by NCUA. NCUA. The National Association of Realtors reported Thursday that sales Federally insured by NCUA. of existing U.S. homes fell 2.4 per*New members for youth account only. Kaua‘i FCU will make your first deposit cent from February to March at an annual rate of 4.44 million. Median of $25.00 when you open an account between 4/1/23-4/30/23. No minimum ȒɖȇɎ ȒȇǼɵِ kƏɖƏٻǣ I!È ɯǣǼǼ ȅƏǸƺ ɵȒɖȸ ˡȸɀɎ ƳƺȵȒɀǣɎ Ȓǔ ِדאڟɯǝƺȇ ɵȒɖ Ȓȵƺȇ Əȇ ƏƬƬȒɖȇɎ ƫƺɎɯƺƺȇ ِבאٖבٖגٮבאٖٖגzȒ ȅǣȇǣȅɖȅ ȒɖȇɎ ȒȇǼɵِ kƏɖƏٻǣ I!È ɯǣǼǼ ȅƏǸƺ ɵȒɖȸ ˡȸɀɎ ƳƺȵȒɀǣɎ Ȓǔ ِדאڟɯǝƺȇ ɵȒɖ Ȓȵƺȇ Əȇ ƏƬƬȒɖȇɎ ƫƺɎɯƺƺȇ ِבאٖבٖגٮבאٖٖגzȒ ȅǣȇǣȅɖȅ home prices fell to $375,700, down required to receive the bonus. Deposit will be made at time of account opening. 0.9 percent from a year ago, bigِ (ƺȵȒɀǣɎ ɯǣǼǼ ƫƺ ȅƏƳƺ ƏɎ Ɏǣȅƺ Ȓǔ ƏƬƬȒɖȇɎ ȒȵƺȇǣȇǕِ xɖɀɎ ȅƏǣȇɎƏǣȇ Ə ȅǣȇǣȅɖȅ ƫƏǼƏȇƬƺ Ȓǔ ِדאڟɎȒ Ǹƺƺȵ Ɏǝƺ ƏƬƬȒɖȇɎ Ȓȵƺȇ ƏȇƳ ِ (ƺȵȒɀǣɎ ɯǣǼǼ ƫƺ ȅƏƳƺ ƏɎ Ɏǣȅƺ Ȓǔ ƏƬƬȒɖȇɎ ȒȵƺȇǣȇǕِ xɖɀɎ ȅƏǣȇɎƏǣȇ Ə ȅǣȇǣȅɖȅ ƫƏǼƏȇƬƺ Ȓǔ ِדאڟɎȒ Ǹƺƺȵ Ɏǝƺ ƏƬƬȒɖȇɎ Ȓȵƺȇ ƏȇƳ ȒɖȇɎ ȒȇǼɵِ kƏɖƏٻǣ I!È ɯǣǼǼ ȅƏǸƺ ɵȒɖȸ ˡȸɀɎ ƳƺȵȒɀǣɎ Ȓǔ ِדאڟɯǝƺȇ ɵȒɖ Ȓȵƺȇ Əȇ ƏƬƬȒɖȇɎ ƫƺɎɯƺƺȇ ِבאٖבٖגٮבאٖٖגzȒ ȅǣȇǣȅɖȅ gest year-over-year drop since JanMust maintain a minimum balance of $25.00 to keep the account open and earn ƺ çǣƺǼƳ Ȓȇ Ə ȵƺȸɀȒȇƏǼ ɀƏɮǣȇǕɀ ƏƬƬȒɖȇɎِ ۏِǣɀ ƏƬƬɖȸƏɎƺ Əɀ Ȓǔ Ɏǝƺ ǼƏɀɎ ƳǣɮǣƳƺȇƳ ƳƺƬǼƏȸƏɎǣȒȇ ƳƏɎƺِ «ƏɎƺ ȅƏɵ ƬǝƏȇǕƺ ƏǔɎƺȸ ȒȵƺȇǣȇǕ uary 2012. ƺ çǣƺǼƳ Ȓȇ Ə ȵƺȸɀȒȇƏǼ ɀƏɮǣȇǕɀ ƏƬƬȒɖȇɎِ ۏِǣɀ ƏƬƬɖȸƏɎƺ Əɀ Ȓǔ Ɏǝƺ ǼƏɀɎ ƳǣɮǣƳƺȇƳ ƳƺƬǼƏȸƏɎǣȒȇ ƳƏɎƺِ «ƏɎƺ ȅƏɵ ƬǝƏȇǕƺ ƏǔɎƺȸ ȒȵƺȇǣȇǕ ِ (ƺȵȒɀǣɎ ɯǣǼǼ ƫƺ ȅƏƳƺ ƏɎ Ɏǣȅƺ Ȓǔ ƏƬƬȒɖȇɎ ȒȵƺȇǣȇǕِ xɖɀɎ ȅƏǣȇɎƏǣȇ Ə ȅǣȇǣȅɖȅ ƫƏǼƏȇƬƺ Ȓǔ ِדאڟɎȒ Ǹƺƺȵ Ɏǝƺ ƏƬƬȒɖȇɎ Ȓȵƺȇ ƏȇƳ 0.10% Annual Percentage Yield on a personal savings account. 0.10% is accurate Investment in U.S. housing has ǣȸƺɀ Əȇ ƏƳɖǼɎ זȒȸ ȒǼƳƺȸ Əɀ Ə ǴȒǣȇɎ ƏƬƬȒɖȇɎِ ǣȸƺɀ Əȇ ƏƳɖǼɎ זȒȸ ȒǼƳƺȸ Əɀ Ə ǴȒǣȇɎ ƏƬƬȒɖȇɎِ ƺ çǣƺǼƳ Ȓȇ Ə ȵƺȸɀȒȇƏǼ ɀƏɮǣȇǕɀ ƏƬƬȒɖȇɎِ ۏِǣɀ ƏƬƬɖȸƏɎƺ Əɀ Ȓǔ Ɏǝƺ ǼƏɀɎ ƳǣɮǣƳƺȇƳ ƳƺƬǼƏȸƏɎǣȒȇ ƳƏɎƺِ «ƏɎƺ ȅƏɵ ƬǝƏȇǕƺ ƏǔɎƺȸ ȒȵƺȇǣȇǕ as of the last dividend declaration date. Rate may change after opening account. dropped for seven straight quarters — including freefalls at an anYouth account requires an adult 18 or older as a joint account. ǣȸƺɀ Əȇ ƏƳɖǼɎ זȒȸ ȒǼƳƺȸ Əɀ Ə ǴȒǣȇɎ ƏƬƬȒɖȇɎِ nual rate of 27.1 percent from July through September and 25.1 percent from October through December last year.
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