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As the economy grows at a rapid pace, financial markets are predisposed to the idea that the Federal Reserve will continue to raise rates, but the latest real estate data released by the Commerce Department could indicate opposite.
The ministry revealed that new home sales fell 5.3% – after a revised downward figure in May, representing a low of eight months. This, combined with the National Association of Realtors, which reports that existing home sales fell 0.6% in June, could show possible cracks in the real estate market.
Related: Leveraging Real Estate Trade [19659002] Meanwhile, as interest rates continue to rise, mortgage applications are dwindling. According to the Wall Street Journal, mortgage applications declined by 2.5% the week ending July 13, according to the Mortgage Bankers Association.
According to the National Association of Home Builders, housing accounts for between 15 and 18% of GDP. residential investment and consumer spending on housing services. A late real estate market could put Federal Reserve Chairman Jerome Powell on a hiatus regarding rate hikes he sees the real estate sector in the rearview mirror while the rest of the markets is exceeding the speed limit .
led the general economy out of recovery and now it is leading "to a slowdown, said Zillow senior economist Aaron Terrazas.
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