Existing-Home Sales in 2024 Were Slowest in Decades Amid High Mortgage Rates - The New York Times

In 2024, existing-home sales were reported to be the slowest in decades, largely due to high mortgage rates that have deterred potential buyers. This decline in sales is creating a ripple effect in the housing market, affecting home prices and related sectors. The article highlights the challenges faced by sellers and the overall economy as housing continues to slow down.

Stock Forecasts

LEN

Negative

The continuing high mortgage rates may negatively impact homebuilder stocks and sectors linked to real estate, as declining home sales could lead to lower revenues and diminished investor confidence in these markets.

XHB

Negative

Since the housing market's slowdown affects related industries, one could also look at ETFs involved in real estate such as XHB (SPDR S&P Homebuilders ETF), which may see price pressures due to continued low sales figures.

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Existing home sales declined in 2024 to the lowest level since 1995, while median home prices rose to a record high as elevated mortgage rates confound the market.

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